Episode 60 Homes Under the Hammer

Hello and welcome to the show.

Now, on this programme, we meet an array of people,

from dedicated developers to fearless first-timers,

and they all have one thing in common.

Yes, they've all caught the property-developing bug.

But no matter where they are on the property-developing journey,

there will definitely be some creases that need to be ironed out.

Yes, but that shouldn't be too much trouble.

A bit of research and hard graft,

both of which you will need if you buy your next home under the hammer.

The great thing about a property auction

is the sheer variety that's on offer.

We've seen people bid for all manner of properties -

townhouses, bungalows, flats.

-The list goes on.

-So, what are we going to feature on today's show?

Let's find out.

I'm off to see a flat in Streatham, and as you might expect from London,

it's a bit small.

This room just feels like it's been cut in half.

While in Cumbria, I've got a three-bed bungalow

guided at £45,000 plus.

That isn't half bad, right?

What's wrong with it?

And I've got an end terrace in Derbyshire.

And when it comes to renovations, I'm not doing things by halves.

It's all got to come out.

All of these have been sold at auction,

and we'll find out who bought them and what they paid for them

when they went under the hammer.

It's gone.

Part of the secret to buying property in London is knowing where

the next hot area will be.

I wonder if Streatham might be a candidate.

Prices aren't as high as in neighbouring Brixton and Wimbledon,

but with plenty of new development

and improvements to the high street,

maybe it's a good place to look for a bargain.

I'm just down the road from Tooting Common on this lovely residential,

leafy street. Also, Streatham Hill station is just a short walk away,

as is the local high street, so great location.

And the property I'm here to see is a one-bedroom first-floor flat

with a guide price of £195,000-plus.

It's in here. What a magnificent house.

Yeah, this one looks really good.

# But there's a sting in the tail

# Of this honeybee... #

So, it's not actually the main entrance you walk in.

It's a narrow staircase, which is steel.

Oh, not great in icy weather.

Not great for anybody with mobility issues.

It really counts them out.

And actually, if you've got a pram, your shopping,

moving in with lots of sofas, it could be very tricky.

Let's see what's inside.

Well, this communal area is pretty dingy.

It's quite poky. Through to the flat and the reception room.

It's an OK space...

..for London.

And a bathroom which is absolutely flooded with light.

I'd love to have a daytime bath in there.

But the odd thing is, the rest of the flat is not flooded with light.

You don't want your bathroom

to be the place where you get your bright light.

You want it everywhere. And this explains the dinginess.

So, you've only got one not-huge window.

So, I'm just thinking, is there a way of making this place brighter?

A bright idea would be to take down that separating wall

to let the light from the glass panel above

stream directly into this side of the living room.

# Been down, yeah

# But I've come back brighter

# Yeah!... #

Also, you could add a full-length frosted-glass door to the bathroom,

provided, of course, that it's made from safety glass, unlike this one,

which needs replaced and leads...

..through to our first and only bedroom.

This room just feels like it's been cut in half,

and that's exactly what has happened, because it's a conversion.

But you would accept an awful lot of things that you might not

because we are in London. And the windows...

Well, they're just not in keeping with the property

and indeed with many of the houses on the rest of the street.

It'd be lovely to restore some sash windows here.

That said, because this is a conservation area,

there are many more hoops you have to jump through to get permission.

This flat really does have a double whammy.

Not only is it in a conservation area, it's leasehold,

so to make any of those changes I mentioned,

you'll first need the permission of the freeholder,

and they have the right to refuse.

# It hurt me so much

# To be able to look

# When I know I can't touch... #

And just in case you thought

that was all there was to worry about here,

the lease on this flat only has 54 years left on it.

Although individual lenders vary, with less than 60 years left,

how will that affect this property's mortgageability?

Well, we've asked along a local estate agent to get his opinion.

The lease being 54 years would make the property unmortgageable

to most lenders so would definitely affect the resale.

You can extend it by negotiating with the freeholder,

but it's wise to start negotiating before you purchase,

as it can be costly.

The agent thinks that even if renovated to a good standard,

the resale value without extending the lease

would be £250,000 to £275,000.

But how much could it be worth if the lease was extended?

The value of this property once it's brought up to a good standard

will be £325,000 to £350,000.

Well, this flat is not as magnificent on the inside as it is

on the outside, but it could be a great find for someone willing

to put in a bit of work. It just needs some modernisation and TLC.

A guide price of £195,000-plus doesn't seem like a steal,

but we are in London,

and this could be a great location and a great flat.

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

Nice double-fronted building.

And 195 on this.

Who'd like to start? 195?

195, sitting down.

195. 200. 200, 200.

Yes, on my right.

200. 205. 210.

215. 220. 225.

230. 225.

Back to you. 230. Someone coming over here.

230?

No? If not, 225.

Another thousand, 226?

225, first time.

Second time.

Third and last time, if you're all done.

Sold, 225.

-Well done.

-The successful bid was paid by Paul, who paid £225,000.

He's bought it with his wife Kia.

They've decided to take up property development,

and this is their first venture, which they plan to sell on.

So, to find out what they're going to do with the property,

I met them there.

-Kia?

-Hello there.

-Hello. Paul?

-Hi.

-Lovely to meet you.

-And you.

-And congratulations.

-Thank you very much.

Yeah, what a purchase. I really like it. You obviously did.

Of course, yeah. I mean, it was...

I saw it, we actually came to see it twice before the auction

-and both fell in love with it.

-First of all, a wee bit about you.

If this was your first auction purchase, what do you do normally?

Well, I used to be a doctor, and I retired.

We've always had an interest in property.

Then we thought, well, why not do this as a...

-..something to do in my retirement, I guess.

-Why not?

-Yeah. Exactly.

-And Kia?

-Yes.

-Have you been in property?

Erm, no, not particularly.

I've lived in a few nice houses of my own,

which I think I presented reasonably well,

and that's really, I suppose, how we agreed to split our roles.

Paul's the really practical one, having been a doctor.

You know, doctor, plumbing, all not that far removed!

And I'm more of the sort of style wallah.

So I force him into much more expensive purchases than he'd

normally do just so that it looks kind of cool and sexy and nice.

You said you'd been to see the property twice.

-Uh-huh.

-What was it about it that you wanted?

For this area, I think it's perfect. It's a lovely area, lovely street.

Very quiet. But close to the amenities.

What do you want to do to the flat?

Well, I guess a complete refurbishment

to make it really attractive to the sort of target market

that we're aiming for.

-So, you're aiming quite high-spec?

-Reasonably high-spec, yes.

I think this is a great little place for the young professionals

that would want that. I think they have... They're quite discerning.

So I think it would have to be quite high-spec

and quite nice-looking and attractive and aspirational...

..to give it that edge.

Not only good flooring, but underfloor heating in the bathroom,

perhaps the system where you can control all your heating

and the lighting from your phone.

I put in underfloor heating to my house,

so I know quite a lot about it.

Are you thinking of doing the pipe system or doing...?

-I think the electric system.

-The electric system.

That's what we've had a quote for from the bathroom people already.

And I think that little extra touch of perceived luxury,

people are going to like. I think that's the way we want to be going.

# Do whatever must be done

-# Oh, Lord, I got a hatful of blues

-Got a hatful of blues

# Yeah, I got a hatful of blues

# Lord, I got a hatful of blues... #

It might seem a lot of talk about ways to keep your tootsies warm,

but Kia certainly knows what she wants.

She used to work at a leading auction house,

so I expect her artistic flair will shine through in this renovation.

Most plans are in place, but they are still hammering out

the details on what to do about the windows.

Any other layout things you're planning on doing?

-Really, there's not much you can do.

-Well, I think this wall...

The one behind you, yeah.

This little alcove into the bathroom seems to be wasted space.

I think we'll get rid of that and move the wall straight across here,

so perhaps get a slightly bigger bathroom with the light here,

glass here right across,

bringing the light in from that point of view.

Yeah, do you know if...? Because it is a conservation area. Normally,

you wouldn't have to worry about knocking down internal walls,

but do you know if you do have to get consent for that?

I don't think we'll have to get consent for that.

Obviously, we'll have to speak to the freeholder,

but I hope that won't be a problem.

Now, speaking of freeholds and leases...

-Yeah.

-..the lease is 54 years.

-That didn't put you off?

-No, it didn't put us off.

The leaseholder actually owns the ground-floor property.

She is actually overseas, and I spoke to her lawyer,

who has power of attorney, beforehand,

who said there shouldn't be a problem,

she doesn't envisage a problem extending the lease.

And one of the other flats in the building has already had the lease

extended, so I don't anticipate any major problems with that.

-Lovely. And how long do you want this project to take?

-Well, I guess,

to some extent it is going to depend on the planning situation,

but I reckon we're looking at about three months.

-So, what budget are you thinking of?

-Well, I suppose it depends

on the window situation, but for doing the rest of the flat,

-about 20,000.

-I can't wait to see what you do with the place.

-I'm expecting high-end.

-Absolutely.

-You will get high-end.

-Good luck.

-Thank you very much indeed. Thank you.

-Thanks, Paul.

-Nice to meet you, Kia.

-Thank you.

Retired doctor Paul and his wife Kia,

they've bought a lovely little property here,

but will it give them high blood pressure

trying to deal with that short leasehold and selling it on

and also having a property that's in a conservation area?

They want to spend a lot of money to make this flat really high-end,

but will they get that return on the investment?

Hopefully, we'll come back and say it's just what the doctor ordered.

You can find out later in the show.

I'm on the Cumbrian coast and in the village of Flimby,

once known for its coal.

But with those days behind us,

wind farms have replaced coal in the energy stakes in the area.

I wonder if I'll be blown away by today's offering.

Well, literally a stone's throw from the coast

is the property I'm here to see,

and it's one of those auction lots which...

I don't know, immediately,

you're going to sense something might not be quite right.

£45,000-plus was the guide price for this,

a three-bedroomed detached bungalow.

That doesn't sound like a lot of money to me.

What's wrong with it?

# What's wrong with you?

# You're looking kind of down to me

# Got to turn around... #

OK. It doesn't look so bad so far.

Erm, it doesn't smell damp.

Nice, big entrance area, creating this lovely open feel

to the centre of the bungalow. A fairly standard design,

you know, one big area off which all three rooms are situated.

Three bedrooms - one there, one there, one there.

Looks like a bit of damp in that one.

That's not too bad. Good-sized family bathroom.

I love the colour of that suite!

That is classic! Erm, through into a lounge and what seems to be...

..yep, a sort of kitchen/dining area.

It looks like somebody's knocked a bit of this wall out.

Dining area here. Kitchen there. Obviously, needs a bit of work

and new units and everything,

but it looks like there's a utility further that way. Erm...

Ah.

# Listen to what I say... #

Oh, dear. With cracks like this in the floor and ceiling,

it does beg the question, is this Flimby bungalow, well, flimsy?

The evidence is apparent in the lounge, too.

Cracks in the corners here.

All along the top, where the wall meets the ceiling.

And the front wall of the property, a really nasty-looking crack.

It would seem that there is some kind of structural problem here.

Subsidence, maybe a wall giving way.

I don't know. Needs a bit more investigation.

Maybe that's the reason for that price.

Out the back of the property, and a half-decent-sized garden

and the benefit of real nice views across this open countryside.

However...what's that?

It doesn't take a Sherlock Holmes to work out they're Portakabins,

and they could be the precursor to some building work going on there.

It's worth digging around, checking out if there are any

local plans for housing developments or whatever,

because that view might not be here forever.

# I've seen the cracks in this town... #

A little research has thrown up that this house was built on

what used to be an ash dump, and close by was a pond.

So potential problems with foundations

immediately spring to mind.

A professional survey should unearth the root cause,

but before going to that expense,

the advice of a local estate agent could prove invaluable.

We called in the auctioneer who sold the property for his opinion.

There's evidence of the foundations giving way,

so there's probably underpinning required.

There's also some evidence of wall tie failure,

and there's also evidence of what we call locally slag flooring,

where the construction of the floor's from material -

sand, beach sand, stones, pit slag -

and sometimes it tends to bubble in the middle or spread out.

So the whole thing needs

a structural engineer's report, I think.

It could be that the property might be better to be floored and rebuilt.

Just to clarify, "floored" means razed to the ground.

You'd still have the site to sell after demolition and clearing,

but how much would it cost to put this place right?

I think a guesstimate for all the work, including wall tie failure,

remedial underpinning, re-laying the floors then refurbishment of

the property, including kitchen, bathroom, windows,

heating, floor coverings, decorated throughout...

..I think it's probably in the region of £30,000 to £40,000.

Potentially cheaper than I thought, and, once done,

what would this potential £45,000-plus house sell for?

I think you're probably looking in the region of

£130,000.

Well, it's a bungalow which certainly has a lot of space,

but it's certainly one of those auction lots

where it is buyer beware,

because what kind of problems are hidden beneath?

I don't know. Let's see who bought it when it went under the hammer.

Spacious detached bungalow, this one.

Modernisation and structural attention is required.

£45,000 bid.

At 45 here, seated, right away at 45 I'm bid now.

In once. At 45,000. 46, back row.

47, may I see? And 48.

Rapidly exceeding the guide prize, the bids climb to 58,000,

where we rejoin the auction.

58. 58 I'm bid.

59? And 60, may I?

60, you can. One...

Two... 62, I've got.

63. A shake of the head at 63.

At £62,000, first time.

£62,000, second time.

Are you sure? At £62,000, selling away, all done, all out.

Could I have your paddle number, please?

Securing the lot was local electrician Lee,

who lives just a few hundred yards from the bungalow

with his girlfriend Paula and two-year-old daughter Keeva.

He initially suspected the cracks

were due to the weight of the large chimney at the side of the bungalow,

which shows signs of movement.

We met to discuss his plans back at his £62,000 purchase.

Lee, good to meet you. Congratulations.

-Thank you.

-Tell me why you wanted to buy the bungalow.

I wanted a house for meself, ideally.

And, well, the starting price sort of attracted us to the auction,

and when we got there obviously it went for a bit more than we thought,

but it was still just beneath me top line, so we made it, luckily.

Good job. What was it about this place that particularly appealed?

Erm, nothing in particular.

It's just round the corner, and it was just there.

And I wasn't really looking for anything, but we looked at it.

This had been up for auction a couple of months before I bought it,

and...I think it went for about somewhere in the mid-50s.

When it came back on the market, I thought there's a good chance

it'll make a similar price, so I had a go and we won it, so...

Were you suspicious at all about the fact that it had been

in the auction, sold, put back straight into the auction?

Sometimes that could flag up a bit of an issue.

I just thought, well, there's a good chance somebody's bought it,

expected a mortgage on it and not been given it

because there's obviously something badly wrong with it.

But that didn't put me off.

I thought, "We'll deal with that when we come to it."

Lee's already started alterations,

having already knocked down the kitchen wall,

and at least he viewed the property inside before the auction.

What have you noticed since you've been here more?

Just more cracks. Bigger cracks. Erm...

Yeah, there's a lot more cracks than I thought.

-Right. And what do you think about that?

-Erm...

Again, we've just got to wait and see

or get somebody to have a look at it and see

if I put plans in, because the idea is really it's a family home.

I would like it to be a dormer bungalow.

-Nice.

-If I can put in the planning permission and get it granted

for that, then we'll have to look at how we're going to do it,

whether we can go up

or certain bits of it will have to come down,

and it might even need underpinned or just...

I don't know. I'm just kind of guessing.

You seem remarkably calm about it.

Well, there's not much I can do about it now, is there?

-It's done, and we'll just deal with it when we get to it.

-Right.

Very pragmatic, but I would think making the loft space habitable

may be problematic given the structural weaknesses.

But I guess it depends on how much money he can throw at the problems.

So, what's the budget for what you're planning?

Basically, I wouldn't like to spend any more than sort of £70,000.

-70?

-Yeah.

-70?!

-I honestly just don't know what's to do and what needs to do

-and what things cost.

-But I was worried you were going to say,

like, ten to 15, and I was going to say that

that's probably going to be a bit tricky, but 70 is definitely

-a healthy budget.

-Yeah. I think...

What does that work out? 132,000,

something like that, at the end of it all,

and I just think that will be a fair price for a house of this size

-and in this area.

-Yeah, definitely.

It's just about not being broke in the process.

And what's the timescale?

12 months, I think...

..we'd like to be all sorted out

or at least somewhere you could move into.

Are you going to do anything other than the electrics?

I'd like to think I'll be allowed to labour for the other trades,

but obviously, I'll do all the electrics.

I'll help out with the rest of it and just try and keep costs down.

If I start getting in the way and increasing costs I'll step back

-and let them get on with it.

-Well, listen, congratulations.

Good luck with it, and I look forward to seeing how you do get on.

I hope the cracks don't turn out to be as dramatic as they look.

Well, fingers crossed. We'll see.

Well, it's great that Lee has found this place for him and his family,

but I am very, very worried about

what it's going to take to sort it out.

How bad is the subsidence, if that's what it is?

What are causing those cracks? So much work to be done,

and although he's got a very healthy budget,

a lot of that could be taken up just getting the basics right.

How will he get on? You can find out later in the show.

Coming up, there might be a little magic at this house in Derbyshire.

Some good storage under the stairs.

Keep your wellies in there, your coats.

Or your wizard.

And find out if Lee needed a magic wand to sort out all those cracks

at his bungalow.

MUSIC: Stairway To Heaven by Led Zeppelin

Back now to Streatham, south London, where previously,

I looked around a one-bedroom first-floor flat

in this splendid house.

Unfortunately, the only access was a bit of a challenge for some.

It's a narrow staircase, which is steel.

Oh, not great in icy weather.

Not great for anyone with mobility issues.

It really counts them out.

And actually, if you've got a pram, your shopping,

moving in with lots of sofas, it could be very tricky.

There's no doubt the access would limit the appeal of this flat,

but would the purchaser be...

# Buying a stairway to heaven... #

The windows... Well, they're just not in keeping with the property

and indeed with many of the houses in the rest of the street.

It'd be lovely to restore some sash windows here.

That said, because this is a conservation area,

there are many more hoops you have to jump through to get permission.

Paying £225,000 for the property were husband-and-wife team

Paul and Kia,

and they were ready to jump through planning and other hoops.

They were also planning on a top-quality finish.

Underfloor heating in the bathroom. Perhaps the system where you can

control all your heating and the lighting from your phone.

They wanted new windows and intended on selling,

but how long did they think it would take to turn this

-into a high-spec apartment?

-I reckon we're looking at about three months.

-So, what budget are you thinking of?

-Well, I suppose it depends on

the windows situation, but for doing the rest of the flat about 20,000.

Half the battle with renovations

is being able to see the potential in a property,

but, like many things, the more you do, the better you become.

# I needed to believe in something... #

So, with this being their first property development project,

self-belief would be paramount.

We were back just over six months later to see the results.

# I needed to believe!... #

Moving the bathroom access around the corner

has made a huge difference to the living space.

# I needed to believe in something I needed to believe!... #

In the bedroom is Kia's new storage.

In addition to the new wardrobes and carpets,

there are new double-glazed sash windows. It's a long story.

I'll tell you more about that when we get into the kitchen.

It's the sort of error that tests your faith.

# I needed to believe... #

Kia wasn't happy with the proportions of the windows,

so the splashback is still to be fitted.

# I needed to believe... #

But the good news is the glazing company is correcting the issue

free of charge. The bathroom looks great.

It's full of light and is able to let more flow through the rest

of the flat thanks to some handy new additions.

We put in those glass lights up there,

and I think that does bring wonderful light in.

The bedroom looks fabulously light.

There's light coming in through that lovely window in the kitchen,

so I'm very pleased with that.

The work was mainly carried out by a friend's building firm,

-but Paul did do some painting.

-I repainted the whole metal staircase

with rust-proof paint to make it a little bit more attractive,

but apart from that,

there's nothing much else you can do,

because that's the only access to these flats.

-And what was Kia's role?

-I chose virtually everything,

from the skirting boards to the sockets

to the light switches to the door handles, and I am INCREDIBLY fussy,

but I got my way, and I will say,

I think sometimes it's worth spending just that little bit more.

And Paul dealt with the builder and all the sort of technical

kind of things that I find terribly boring.

Did Kia help with the stripping out and painting?

No way! My fingernails would break off.

No, I'm joking. No, I didn't, not at all.

I was more the person that did the shopping, basically.

Suited me just fine.

And Kia's favourite part of the flat?

Probably the added storage.

TAPED CHEERING AND APPLAUSE

We found all sorts of little places

where we could make this extra storage.

It's light, it's bright. I think it's quite chic.

Paul got his heated bathroom floor, mobile-phone-controlled heating

and automatic low-level lights.

Mysteriously, they switch on when movement is detected.

All part of Paul's favourite bit.

I think I'd be most pleased with the bathroom,

because I think it's turned out fantastically

and it looks really smart and very modern.

# Chic!... #

Apart from the wrongly proportioned windows,

there's nothing shabby about their chic, but the question is,

what did their chic ish' add to their 20-grand budget?

We've obviously gone over that quite substantially,

and the figure that I came up with last night

was £39,073.43.

Ach, let's call it 39 grand between friends.

And another cost to be added will be the extension of that short lease.

They're in negotiations but hope to agree a fee of £45,000.

Added to the purchase price, this brings the total spend to 309 grand.

Was it worth it? We've asked along two local estate agents to find out.

First, let's hear from the agent who saw it last time.

I think that the owners have done a fantastic job on doing it up.

It's been done up to a very high finish.

Yeah, they've obviously spent a lot of money on it.

I actually think the layout really works.

It's, like, decent-sized bedroom, open-plan kitchen,

decent-sized bathroom for a property in this sort of period.

Plenty of positives, then,

but will their £309,000 investment bring them plus points in the profit

-department?

-If I was to put this on the property for sale as now,

we'd be looking in the region of £375,000 to £400,000.

If we were putting this property on the market today,

we would be putting it on for offers in excess of £375,000.

Well, I'm really pleased, and I think, for a first project,

that's not a bad little return.

And plus, we've enjoyed all of this,

so it's almost being paid for having fun.

Erm, so excellent news, to me.

That top figure would also give an excellent profit

of £91,000 before taxes and fees.

With this first renovation a success,

what's next for Paul and Kia?

We've a holiday coming up, and then, once we've sold this,

then hopefully we'll plough some of the money, some of the profit,

back into another project.

Sinfin lies just a few miles from Derby city centre.

It's mentioned in the Domesday Book as the manor of a Norman lord.

There's been less lording about

since the end of the industrial heyday,

but it's still a very well-mannered suburb.

I'm not too far from Derby town centre.

In fact, there is a bus stop just at the end of the road

that will get you in the town centre in no time,

so we are in a good location.

Also, we've got all the amenities close by that you could want.

Our property is this semidetached three-bed house with a guide price

of 55 grand.

A quiet road and certainly plenty of space outside, so a promising start.

Very good. You've got a bit of hallway space here before you go

into that sort of lounge/living area.

Quite dark, though, with this blue wallpaper.

And you've got double doors going out.

Wow, have you seen the size of that garden?

Slightly overgrown, but that can be dealt with.

Good-sized room, good-sized lounge and living area.

Back over this decent-sized hallway,

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

You have got some good storage under the stairs.

Keep your wellies in there, your coats.

Or your wizard.

Your choice, of course. And in here, kitchen.

Good-sized kitchen. Lots of space.

Very '90s kitchen with this kind of finish in the corner.

But...it's all got to come out. Freshen it up.

Nice, brand-new kitchen in here. What have we got in here?

We've got a downstairs toilet.

Fantastic. And here, we've got more storage. So, all good down here.

So far, I can't find any faults.

Another plus point is it appears to have central heating.

# Whoa, mama, it's getting warm in here!... #

But rather than waste money on a fuel bill, I'd look to get some

double glazing in and make sure it's really toasty and save some cash.

Right. Upstairs, we have got three bedrooms with...

..a family bathroom. Now, that...

..is pretty tight, and the configuration

is a little bit strange.

You've got your bath here. Obviously, you can see the toilet,

but you've got an immersion heater, sort of boiler tank there.

I'd want to rip all this out. I'd want to put a combi boiler in here.

Strange. Here you've got two bedrooms

which are really small bedrooms.

You'd possibly get a double, maybe squeeze a double in there,

but a single would be more apt.

And then into your main bedroom here, again, which is not huge,

but you'd get a double bed in here, no problem at all.

Bigger of the three bedrooms. Ceilings aren't a bad height.

You've got your dual-aspect windows, as well.

But I just don't know where all that space from downstairs has gone,

because it's not up here.

# Where'd it go? I don't know... #

You really do miss the spacious layout downstairs.

Up here, it seems all the floor space

has been eaten up by bad design

and water tanks big enough to host an aquarium.

How could we solve this?

Look outside, and don't miss the potential with this property.

Have a look at this. All this off-street parking is a thumbs up,

and you've got all that space there for, potentially, an extension.

That's very good.

A two-storey on the side might give you a couple of extra bedrooms,

and the back garden wouldn't be affected.

It's a brilliant size for a family house.

And while the extension may look attractive,

the numbers need to stack up,

so we called in a local property expert to ask if this house,

guided at £55,000, would work if it was extended.

It's a good, solid house. The garden plot is much bigger than

I thought, which does offer potential.

In my opinion, this isn't the right property to extend.

Generally, houses around here aren't extended, because there is

a ceiling price for the area. If there's space to build on the side,

whether there's a potential to build another home or not

could be looked into. That would be quite lucrative.

But extending this property might be a bit risky.

Something to bear in mind.

You might be able to extend a house, but you can't change its location.

What course of action would the agent suggest

and what price could it attract?

If it was my property,

I would renovate it and resell it, move on to the next project.

There is a healthy demand for rentals in the area, as well,

so there's always that to fall back on.

On completion, I would expect a rent on this property

of around £575 per calendar month.

On the sales market, once completed,

I would expect this property to achieve potentially £110,000.

If it was extended and two bedrooms were added,

the agent thinks it could sell for £125,000,

so extending for investment...

..nah. But if you wanted to live here long-term,

it would make a lovely family home.

This is one of those projects that can be as big or as small as you

want it to be. This house could get turned around relatively quickly.

You could get it on the rental market or the sales market ASAP.

Or you can go for the bigger picture

and get the extension put on the side.

Let's find out who was attracted by that potential

when it went under the hammer.

If you missed the last lot, this one's just as good.

Guide price today is £55,000.

Who will start the bidding at £55,000, do I see?

At £55,000, I'm away. 56 now, thank you.

57. 58. 59. 60 now.

61. 62.

The bidding is locked between two parties going in increments of £500.

We rejoin the bidding at £83,500.

At £83,500.

Gentleman's bid, seated on the aisle, at 83,500 I shall sell.

At 83,500 for the first time.

At 83,500 for the second time.

84. And a half.

85. And a half.

86. And a half.

At £86,000, back with you, sir, seated.

At £86,000, with you, seated on the aisle, then, at the back,

for the first time. At £86,000 for the second time.

You're sure and done at £86,000. Fair warning. Hammer's up, it goes

third and final time.

Sold, it's yours, sir. Paddle number 940 at £86,000.

Well fought, and thank you.

Fighting off all comers was Kumar,

who bought his first investment property for 86 grand,

and well bought, I think.

Were his plans for this place big or small?

-Kumar, nice to meet you.

-Nice to meet you.

-Congratulations.

-Thank you. Why this house?

-This was a good-sized plot,

and the house was in a fairly...

I didn't want a big project kind of thing,

so it's just a minor refurbishment.

And this is your first adventure, isn't it?

-Yeah.

-It's quite a big place, isn't it,

-to start off with?

-The plot size is good.

That's why I thought it would give me a lot of options to play around.

-OK.

-I'll vary how much work I can do or can't do.

OK. So, what do you do now? What's your day job now?

-Erm, I'm an IT consultant.

-Oh, I see!

-Yeah.

One of those very clever people.

It doesn't surprise me at all.

-Not really.

-So, what were your thoughts when you bought it?

Were you thinking, "I could buy that to sell it, buy it to rent it,

"I might buy it to live in"? What was your thought?

Initially, it was buy to sell...

I'll decide after the refurbishment takes place what price and stuff.

So, now you've been and you've had a look around.

What are your thoughts now you've had a proper look?

I'm just going to do a minor refurbishment at this point.

New kitchen, bathrooms, floorings and whatnot.

So, what about layout changes, then? Are you going to change it at all?

It's quite a... It's deceiving.

Down here's quite big, upstairs is quite small.

A couple of bedrooms are smaller, so...

There is a little bit of space in the bathroom if I get

a combi boiler in. It might give a little bit of space.

-Gotcha.

-But I think it will be good

if we can get a double-storey extension.

Is that something you want to do, or...?

Yeah. It totally depends on economics,

so I'm going to have to speak to an architect

to see what the options are.

-OK.

-Ideally, I would like to have a wraparound extension

with a double storey on the side.

-Nice.

-But again, economics and planning permission, obviously.

-Yes.

-That's going to dictate that.

# I keep thinking 'bout a new thing... #

For his new career, Kumar has the right idea -

do the existing place up and then see if the time and price is right

for an extension on the side.

# I keep thinking 'bout a new thing... #

But for his new venture,

he really couldn't have picked a property any further away.

-You're not from Derby, you're from London.

-That's right.

How's that going to work, going backwards and forwards up and down

-the motorway?

-I'm going to take a couple of weeks' holiday and do the

-bits I can...

-Uh-huh.

-..and then project-manage it from there.

You know, in terms of the professional trades,

getting them in and just coordinating them remotely,

and take it from there.

Careful with the pennies.

Be careful with the pennies and the pounds will look after themselves.

-What is your budget?

-At this point, £10,000.

-£10,000?

-Yep.

-I'm taking a guess - that's without an extension.

That's without the extension, yes.

A ten-grand budget. How long is it going to take to do?

I'm hoping three months.

Now, do you roll your sleeves up and do you get involved?

-I can do decoration!

-OK!

-Decoration, stripping wallpaper, painting,

you know, that sort of thing. Plumbing and electrics and stuff,

I'm going to have to get the tradespeople in.

Leave it to the pros. Electric, gas, plumbing, all that stuff,

-leave it to the pros.

-Yeah.

Whatever happens, I hope it all works out. I hope it's a success.

-Thank you.

-Your first foray into the property-developing world.

-Thank you.

-Good man.

-Thank you. Thanks.

What a really nice bloke Kumar is, and he's decided to

take his first steps on the property-developing ladder.

But what's going to happen here?

Is it going to be as-is?

Is it going to be a single-storey or double-storey wraparound extension?

I'm pretty much like Kumar - I don't know how this is going to end up.

What I do know is that if I take three weeks off work,

I'm going on holiday. Anyway,

you can find out what Kumar ends up with later in the programme.

Well, earlier we saw how one of our property buyers got on.

How about the other two? Will they have hurdles to jump over?

Will it be a smooth race to the finish

or will there be many obstacles along the way?

Let's wait no longer and find out how they got on.

It's time for a trip back to Cumbria,

where I saw a three-bed bungalow guided at £45,000-plus,

which seemed like a lot of house for the money,

so something must have been amiss.

# What's wrong with you?... #

Ah.

Oh, dear.

As I suspected, things weren't all they were cracked up to be.

My concern was that the bungalow would, at the very least,

need underpinning. But the auctioneer who sold it

thought the worst-case scenario would need to be considered, too.

# Listen to what I say... #

It could be that the property might be better to be...

-..floored and rebuilt.

-Even these problems didn't put everyone off,

and it sold at auction for £62,000.

Local electrician Lee bought it for himself,

girlfriend Paula and two-year-old daughter Keeva to live in.

He'd viewed the property before purchasing

and assumed the cracks were caused by the weight of the chimney breast,

although he had started the renovation works

and found out that he'd got more than he bargained for.

What have you noticed

-since you've been here more?

-Just more cracks.

Bigger cracks. Yeah, there's a lot more cracks than I thought.

-Right. And what do you think about that?

-Erm, not a lot.

We've just got to wait and see or get somebody to have a look at it

and deal with that when we come to it.

He was wisely going to get a structural engineer to assess

what work needed to be done. Also, subject to planning,

he wanted to extend the property either up or to the side.

He did have a healthy budget of £70,000 and hoped to have moved

into the house within 12 months.

So, it's time to head back to see just what happened.

But we won't be heading back a year later or even two or three.

It's been just a month shy of four years since we were here.

Fingers crossed the house is now complete.

# Don't you let it bring you down

# Don't you let it bring you down

# Try to see that people change each morning

# Look the other way, a brand-new dawning

# Don't you let it bring you down... #

Yes, it's fair to say that things

haven't exactly gone to plan for Lee.

But he didn't let those cracks get him down.

People thought that the chimney might have been the cause for

the cracks, because the foundations weren't very good

and that probably pulled it over and caused the cracks.

But I don't know, I didn't look into it.

I wasn't interested. I just thought...

We decided to build a house for ourselves, so we knocked it down...

..got plans passed to build a three-bedroom dormer bungalow

with a garage, and then had a change of heart and moved somewhere else.

We bought a house elsewhere that was all ready just to move into,

and it was similar to what we were going to build here,

so we just saved the hassle, buy the house, sell this,

let somebody else have the fun.

Someone may well have a great time building a property here,

but Lee made sure he got some pleasure

from demolishing the bungalow.

I just went and got a hammer, took the internal walls down,

took the roof off with a chainsaw one day.

We loaded it all up into skips and it just went.

And that was the end of that.

It was a good way of getting rid of some aggression, just...

..take it out on the house, get rid of it.

Demolishing a house normally falls under permitted development,

but you have to give the local authority's building control

six weeks' prior notice before demolition begins,

as they may have special conditions

to protect neighbouring properties and of course the public.

And don't assume planning for another property in its place will

be easily granted. The local council will need to be assured

the ground you're building on is fit for purpose.

We had to do a desktop study to decide what kind of membrane to put

under the house before you build it.

It tells you the condition of the ground you're building on.

And the ground was OK, everything was OK

just to build as a normal house.

Aside from the cost of skips

and the planning applications for the bungalow,

it hasn't cost Lee anywhere near as much as his £70,000 budget

for the build. But it has taken almost four years to get to the end

of his project. So, any regrets?

I don't really regret it as such,

but obviously it would have been better if I hadn't bought it, but...

..you live and learn, don't you?

# But I lived and I learned

# Yes, I lived and I learned... #

It's time for us to learn what two local estate agents think of this

former bungalow which is now a building plot.

I think demolishing the property

and starting again was the right decision, given the state it was in.

The main selling point of a property in this location,

it's a good village, nice little village,

and this is a good-sized plot.

The best course of action with the land would be to build a three-bed

dormer bungalow now that the existing bungalow has gone,

and it will keep it in design with the existing properties.

Lee purchased this for 62,000,

but that of course was when it was a bungalow,

so has he made the right move financially by going down the route

of demolishing it and having outline plans drawn up?

With planning permission, you're looking maybe around kind of

£70,000, £75,000.

With planning permission on this plot

for a three-bedroom dormer bungalow,

I think it will be around £80,000.

Lee actually already agreed to sell the property on

but didn't advertise it with planning permission,

as a new buyer contacted him first

and Lee was keen on a quick, simple sale.

Yeah, I probably could've got more for the place

with the planning permission, but I was offered what I paid,

so I just gave up and sold it, and that was it.

So basically I haven't made anything on it.

I've just broke even, less what I paid for the planning permission.

Well, it's maybe not been a completely painless project,

but at least Lee and his family are happy in their new home

and he can take lessons learnt from this project forward.

To sum up this experience, it's just been a bit of a learning curve,

and we just made it up as we went along.

I didn't ask for anyone else's advice or anything like that.

We just went with it, and it was all right the way it come out,

it hasn't hurt.

# But I lived and I learn

# Yes, I lived and I learned... #

MUSIC: In The Mood

Back now to Sinfin, a suburb of Derby, where I saw this end terrace.

The estates round here were mainly built post-war,

and this one's decor was certainly rooted in the past.

Right, upstairs, we have got three bedrooms with a family bathroom.

Now, that is pretty tight,

and you've got an immersion heater, sort of boiler tank there.

I'd want to rip all this out, I'd want to put a combi boiler in here.

The house was bought by IT consultant Kumar for 86 grand,

and it was his first time developing -

his plan, possibly build a wraparound extension and sell on,

economics permitting.

-What is your budget?

-At this point £10,000.

I'm taking a guess, that's without an extension.

That's without the extension, yes.

Now, do you roll your sleeves up and do you get involved?

-I can do decoration!

-OK!

I think that sort of thing. Plumbing and electrics and stuff,

I'm going to have to get tradespeople in.

Leave it to the pros. Electric, gas, plumbing,

-all that stuff, leave it to the pros.

-Right, yeah.

We are back four months and eight days later to see the developments,

starting in the dark pine kitchen

whose U-shaped design occupied most of the room.

Now the units have been moved to one of the walls.

There's room for a small table or breakfast bar in the corner.

Modern, brighter units and appliances lift the kitchen.

Across the hallway, the old lounge gas fire and back boiler

have given way to a modern laminate flooring

which, apart from the bathroom,

runs throughout the house.

There's a much brighter colour palette

and some feature heating components.

Kumar sourced paint with light-reflecting particles

to illuminate the rooms more,

a bright choice considering he's renovating.

# For the first time

# Yeah, for the first time... #

The house has been double-glazed throughout,

making a lighter double-aspect master bedroom.

The smaller bedroom's still quite tight, even for a single.

The second bedroom, adjacent to the bathroom, is still being decorated.

Kumar has inventively increased its size and had a combi boiler fitted

in the cupboard next to the old back door,

removing the need for the hot-water cylinder and loft header tank,

a big plumbing job.

# Oh, these times are hard... #

The bathroom's still bijou, but I'll let Kumar explain.

Basically, the stud wall was...

..around about here, making this bedroom quite small.

It was hardly a single or even less,

so what we did was reconfigure the bathroom so that the stud wall

can be moved a little bit further down -

it gave more space to the bedroom - and then reconfigured the bathroom.

Although the bathroom is small, Kumar has made the best of it,

using his IT background to find a good deal.

That was brand-new, but this time I went for a website

which auctions off end-of-line designer toilets and stuff,

so you get designer-style toilets for normal prices.

After researching the ceiling price in the area,

Kumar shelved the plans for a wraparound extension,

but he did get help finishing the property.

Yeah, basically, it's thanks to my dad and wife, who really helped me,

and my daughter, as well!

She was doing some of the wall painting, door painting as well,

a little bit. And tea making!

It's nice to hear that nine-year-old Abby was helping out.

But what were the other family relationships like

after working together?

Yeah, we had difference of opinions, arguments and whatnot,

but it was all in the end OK. Nothing major.

Commuting from south London must have been taxing,

but what was the biggest difficulty?

Getting the trades and scheduling was a bit of an issue,

because these people are so busy.

So they were the two main hardships, if you like,

but in the bigger scheme of things, nothing,

and no nasty surprises was there. So it was OK in that regard.

-How did the budget fare?

-Originally, I wanted to spend

£10,000, but I ended up spending £13,000.

It was mainly for bits and pieces here and there for handyman stuff.

Originally, the schedule of works was three months,

but it's still not completely finished after four months.

We think it's going to take about five months -

one more month to finish it.

We called on two local estate agents to give us their knowledge on this

property. Was Kumar wise to buy at £86,000 and spend another £13,000

on refurbishing it? Will there be enough opportunity for him

to sell on? First up,

the agent who viewed it before work commenced.

My first impression, having seen this property before, is that he's

done a lot of things in regards to replacing the essential things that

need doing with regards to the boiler, the bathroom,

the kitchen, but he hasn't gone overboard

by trying to overcomplicate it.

The standard of finish, for me,

really is more suited to the rental market.

I think for resale, then we should have

done a little bit more work to the property.

Kumar's total spend is £99,000 to date.

And what's the value likely to be after completion?

Once the property's finished,

I would anticipate a marketing price in the region of £110,000.

If we were to put this on to the open market today,

we would look at an asking price of £110,000.

It is no surprise, yeah.

That's something where I was expecting, as well.

And what could he get renting?

Once completed, I would offer this property for rent

in the region of £550 per calendar month.

So, if we were to put this property on the market for rent,

we would be looking at £550 to £600 per calendar month.

550 is my expectation, as well, on the rental side. Yeah.

Taking the £600 per calendar month optimistic valuation

would give Kumar just over a 7% yield.

So what's it to be, short-term profit or long-term return?

Personally, for me,

I'm going to keep this as a long-term investment

by renting it out.

The first, then, for the portfolio, and for future purchase plans...?

It's a 300-mile round trip every time I need to come to the house,

so I would prefer something much closer.

We meet property buyers from all over the country,

and they've all got their own individual stories to tell.

Yes, and those stories keep us absolutely gripped.

And there are plenty more to enjoy,

so join us next time on Homes Under The Hammer for more auction action.

-Bye-bye.

-Bye-bye.

-Goodbye.