Episode 72 Homes Under the Hammer

Hi, and welcome to the show. Now, if you're looking for a good investment,

then property developing can yield some fantastic results.

Yeah, and there's no shortage of ways

to get into property developing in the first place.

Yeah, and if you're looking for a bargain,

one of the best things you can do is to head down

to your local property auction.

At a property auction, you'll find all kinds of different bidders.

Some are looking for a new home,

some are seasoned property developers,

-and for some, it's their first purchase.

-Yes.

But they all have one thing in common -

they made that successful bid.

Let's see what they bought.

In Romney Marsh, Kent, I'm looking at a bungalow.

They're usually popular.

And solid.

In the Amman River Valley, Wales,

this detached house is big inside, while outside...

there's an Amazon jungle in front of me.

While in a three-bed mid-terrace in Thornton Heath

in the Borough of Croydon...

-You're going to love this room.

-HE CHUCKLES

The kitchen.

All these properties have been sold at auction

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

when they went under the hammer.

Yours, sir. Very well done.

Today, I'm in Dymchurch,

a village situated in the Romney Marsh area of Kent.

It's a historic area with evidence of Roman sea walls

and a reputation for smuggling in the 17th and 18th century.

Luckily, though, these days it's more known for being

a colourful seaside village with long, sandy coastlines.

I'm less than half a mile from the coast here,

on what feels like a really sleepy street,

tucked away from the village.

And I'm here to see a three-bedroom, detached bungalow

with a guide price of £220,000 to £225,000-plus.

So, my initial thoughts are, that's a lot of property

and a lot of garden.

It's really nice. So far, so good.

# So far, so good So don't turn back

# So far, so good

# So far, so good So don't turn back

# So far, so good... #

Inside, my initial impression is it's really spacious and light.

And solid.

You have a first bedroom, handily pointed out

with a little sign on the door saying, "Bedroom,"

and a second bedroom.

Really good sizes.

And a toilet. Interesting colour choice.

Definitely needs taking out. I like how it's an L-shape.

It's a little bit quirky.

And then a third bedroom. Again, a good size.

You have your double glazing, which is good,

and central heating - probably in need of an upgrade.

Rust and leaks.

What you might not expect to find as you walk into a house

are all these bedrooms.

You might expect to have your reception area.

But it's a layout I don't mind.

The place has a good feel,

so long as we're about to come to a good reception area.

Bit tacky.

# Stuck on you

# Got this feeling down deep in my soul

# That I just can't lose... #

You could lose some of the space in the second or third bedroom

to create an en-suite.

But are we stuck with this layout? Well...

# ..Guess I'm on my way... #

To find out.

Yay! I'm not disappointed. This is a brilliant living space.

You could have a party in here. You could have all your pals round.

The fixtures and fittings, the fireplace

and the light switches - they're all really dated

and you just need to rip these out. Otherwise, you have a blank canvas,

which is really exciting for whoever buys this.

And through to the kitchen.

So, you have two entrances to your kitchen.

Again, I like the quirkiness.

This hasn't been touched since, I don't know, the '70s.

But again, rip it out, get a new kitchen in.

What a difference that would make!

And I'm a big fan of open-plan living. I really am.

I would normally say, "Take down the wall. Open things up,"

but only when it adds to the light and the flow of the place.

Here, you've got a good-sized kitchen

and you also have a conservatory through the window,

so the light's coming in.

So, actually, both options would work.

There is a lot of space to work with in this property.

The conservatory's a decent size

and offers great views of the garden outside,

which are a wee bit grey, but...

# Don't you know the grass is greener on the other side?

# Take a trip to my yard

# It's nothing fancy Just a little couch and me... #

And I think I may have discovered another bonus.

This part of the house here is actually a garage,

but you could be forgiven for thinking it was just all part of the house.

So, you could extend perhaps without too much problem.

And looking to planning permission, too,

you could get an extra bedroom, make it a great family home.

Getting rid of that garage wouldn't be a problem

if you could then put your garage onto the side,

or perhaps road parking would be adequate.

The more I see, the more I love this place.

There's a lot of place to love

for that £220,000 to £225,000 guide price.

Did a local estate agent love it as much as me?

We invited one along to find out her thoughts.

# Don't you know the love that you've been dreaming of is mine? #

It's a lovely property. It sits on a really nice plot.

Obviously, it needs everything doing to it,

but it flows very nicely.

The actual layout is very nice.

It perhaps would benefit also from an extension of another bedroom

and perhaps an en-suite, but once that's all done,

I think it'll be an excellent property to sell on.

Dependent on the work that was done,

what sort of resale value could this property achieve?

If you don't actually extend this property,

and just bring it up to standard and update it,

I think you're looking at resale value of £300,000

to £310,000.

If you were going to perhaps extend it,

I think you're looking in the region of £340,000.

This house, well, it is a bit old-fashioned on the inside,

but I don't think it needs much work

to bring it up to its true potential.

As it is, it'd make a great home for a retired couple,

or with a bit of extra work and those three bedrooms,

it could make a fantastic family home.

Let's find out who agreed when it went to auction.

220 to start me. 220. 220,000.

Give me 210 then, please. £210,000.

Despite the popularity of bungalows,

this lot was slow to get off the ground.

However, the bids started to trickle in.

We rejoin at £243,000.

243. 244. £243,000 bid.

244, I have. 245. 246.

246. 246. 247.

Make it 250 and knock him out. No?

No. Looks like we're all done. I shall sell then at £246,000.

It's to you, sir, and you're out. You're going to miss it.

First time at 246.

Second time at £246,000.

You're not coming back in for one more?

-Third and final time, £246,000.

-GAVEL BANGS

Sold, sir, 246,000.

Securing this property for £246,000 was Chris,

seen here on the right, and Andy.

They both have ties to the police force

and have booked themselves a nice home here.

I met them back at the bungalow to find out more about them.

# La-da-da-da, da-da-doo-da Call the police... #

-Hello, Andy and Chris. Pleased to meet you.

-And you.

-Congratulations.

-Thank you.

-Now, I love this place.

Was it a case of love at first sight for you before you went to auction?

I came and had a look at it, and, yeah, the heating was on.

It was a cold day and I thought, "Yeah, I really like this place.

-"It's nice."

-Yeah.

-So, I told Andy.

-I saw it the day before the auction,

but today's the first day of actually being inside.

I'd only looked at it from outside before.

Well, I'm intrigued, first of all, in this relationship.

So, are you friends?

-I hope so.

-THEY LAUGH

Well, normally. Most of the time.

No, we've known each other a long time - 28, 29 years.

So, worked together and friends at work.

Chris retired a couple of months ago and...

-Retired?!

-Yeah.

-Young retirement.

Yeah, young retirement in the police.

So, it's a good sort of pension scheme

and so I've left there,

but obviously, too young to not do anything.

So, I've always been interested in houses and projects,

and I've done a few for myself over the years.

This was something I've always wanted to do and...

Being in the police for so long,

did you just call each other Andy and Chris, or...?

-No.

-I hear that in the police force everyone's got a nickname.

-Yes.

-That's what I'm getting at.

-Absolutely.

-Chappo. Rinny.

-Right.

So, Chappo and Rinny are hooking up for their first project together.

-They are.

-And this is it.

-This is it, yeah.

Chris, you're the handyman.

-So, Andy, what do you bring to the table?

-Money.

-THEY LAUGH

-No.

-I wield a paintbrush.

Yeah, painting and...

-A bit of gardening.

-We've put our funds together to buy this.

We thought we'd buy somewhere which was a bit more expensive

than perhaps some of the other lots at the auction.

And, in some ways, it's a safe bet because there's no damp,

it's structurally fine.

You know, it's quite easy to do in some respects.

Chappo and Rinny - er, sorry, I mean Chris and Andy -

are on the case with this property. What do they plan to do to it?

Potentially, looking at, subject to agreement and discussion,

using the garage as an extension to the building

and perhaps making the main bedroom bigger

and having an en-suite off of that.

That's my one drawback I see with it -

it's just having the one bathroom and one toilet.

And then, just new kitchen, new bathroom,

and perhaps do something with...

You know, remove this old-fashioned fireplace.

Is there anything else you want to change about the layout?

I think we'd like to perhaps try and make the kitchen

into a sort of kitchen/dining area.

-More open-plan.

-Yeah, a bit more open-plan.

Perhaps, where that wall is there, with the sliding door, open that up.

So, although you're still in the lounge, it would feel fairly...

Still as a room. I don't know whether it's a load-bearing wall or not yet,

so we've got to look into, all that sort of side of it.

What are you thinking for your budget?

15 to 20, hopefully.

The big expense would be that garage conversion

cos it's a single-skinned wall,

so it'd have to have an internal wall built for the cavity

and the roof line would need changing as well.

They plan to make this an inside job

with Chris doing most of the handiwork,

and he's even a qualified electrician,

and Andy will manage the finances.

When they have re-hauled this home in four to five months,

what are their plans for it?

We're thinking we'll sell it.

And use that hopeful profit to get your next one?

-Yes.

-Hopefully, yeah.

-Yeah.

See if we enjoy the experience and how well it goes,

but we'll be getting home

and looking at our own houses, thinking, "Ooh, that needs doing."

-That's what happens.

-Yeah, it is.

Cos this'll be better than where I live, I'm sure, when it's finished.

And I can't wait to see what you do with this place, I really can't.

-Best of luck.

-Thank you very much.

-Congratulations again!

-Thank you.

-Thanks very much.

-Thanks.

Former police buddies Andy and Chris

see a lot of potential in this property,

and although it's their first one, they've got a solid plan.

They don't want to just plod on, they want to race through the work.

But what will the old bill come to?

Will they stick to that maximum £20,000 budget?

You can find out later in the show.

We are in the most westerly part of the Brecon Beacons,

near the small village of Glanamman,

which sits on the banks of the River Amman.

Legend has it that King Arthur used to hunt wild boar here

with his band of knights in the Amman Valley...

..a tale clearly held close to the locals' hearts.

I hope today's property is legendary and not a bore.

This is our property. It's bang on this main road.

It is a detached property,

it's got three bedrooms and a guide price of £60,000 to £65,000.

Looks all right. Will it be all right?

OK. So, as you come in,

you've got a reception room on either side of the hallway.

Nice-sized room. Stairs going up to the bedrooms,

which I'll have a look at in a minute.

And on the other side of the hallway,

you've got this reception room as well.

Nice and spacious. They sort of mirror each other,

so you could choose which one you wanted to be your best, so to speak.

Two good-sized rooms. Follow me into the last room,

which is the kitchen and the dining room.

And as soon as you come in, you can see this damage in the corner.

This is damp - bit of water, bit of moisture.

Somebody's already started to investigate that

and that mould seems quite fresh, actually.

So, find out what's causing that mess.

But I do like the size of this room.

There's loads of stuff you can do with this.

It looks a bit of a mess at the moment.

I'd rip it out, I'd start again.

# Oh, my love

# I wish that we could start all over... #

Kitchen/diner aside, so far,

the house seems to be in pretty good order, but quite dated.

Upstairs is more the same -

some big bedrooms that just need some TLC.

I'm going to gamble and say this is the master.

Follow me into here.

And look at all the space you've got in here!

Two windows either end. Loads of light coming in.

Plenty of space. A lot of mould in this corner.

I'm pretty certain this is just on the surface.

This place has been locked up,

there's been no flow of air, you've had stagnant air in here,

so I think that's been created by that.

So, I'm not too concerned, but get it checked out anyway.

You've got all this space in here. You have got a family bathroom.

Could you put an en-suite in here?

Of course you could. Plenty of space in here to do that.

You could actually put an en-suite into one of the other bedrooms

as well, or even both, there's that much space up here. You know what?

I love it when you've got potential,

because the ideas just start to flow.

# Aha-aha-ah

# And everything will flow

# Aha-ah... #

One area of the property that could flow better is outside.

There's off-street parking, which is a must,

cos you're right next to a busy road,

but the tatty outbuildings might have to go.

And this property keeps on giving.

Hold it a minute. Let me get up these stairs. Look at this.

I've got to show you this.

This back garden goes back for miles.

You can't see it because there's an Amazon jungle in front of me

and I'm not going to tackle it.

And I'm getting inside as well cos it's raining, but it's massive.

# I hate days like this

# When it rain and rain It rain and rains

# When it rain and rain It rain and rains... #

Apart from the busy main road, there are obviously no dark clouds

over this property that I can see.

It's detached, really spacious inside and out,

and for what I think is an amazingly attractive guide price

of 60 to 65 grand.

An agent from the auction house who sold it

had some pretty positive thoughts too.

There's lovely little walks opposite.

You've got the Black Mountains in front of you.

We're on a busy road, but also it's on a bus route,

so you've got the best of both worlds here really.

And what is the best price this house,

guided at 60 to 65 grand,

could expect to achieve on the sales market?

If the property came back onto the market

after it had been refurbished,

it should fetch between £140,000 and £150,000.

You know what? It's very rare I go into a house and I say to myself,

"Well, the proportions are right and all the rooms are good sizes."

But with this project, they are.

Let's find out what happened when it went under the hammer.

A lot of property for the money, folks.

£60,000 if you will.

Thank you, sir. I'll take yours at £60,000.

61. Is that a bid, sir?

OK, I'll take yours. 61. I've seen a hand as well.

I'll come back to you, though, sir. 62, then. 62. 63.

There were quite a few people interested in this lot,

so we rejoin the bidding way above the guide price at £84,500.

It's 84 and a half. My friend on the third row.

84 and a half. 85.

Going to come back for one more? He's back in. Thank you, sir. 85.

Sure you won't go one more for me, sir? 85 and a half?

85 and a half. Thank you, sir. 86.

Shake of the head. £86,000 anywhere else?

Or are we all done? Fair warning.

Yours, sir. Very well done.

Looking pleased at that 85,500 purchase

were Angela and husband Itzhak.

Itzhak used to work in the diamond business

and Angela is an energy healer and studies hypnotherapy.

# Baby, you hypnotise... #

I met them to find out what kind of therapy

they had in mind for this house.

# Hypnotise... #

-Angela, nice to meet you.

-Hi.

-Itzhak, nice to meet you too.

-Nice to meet you too.

-Let's go to the beginning.

How did you two meet, first and foremost?

-Ooh.

-Ooh.

-THEY LAUGH

-OK.

-Well, it's probably a little bit unusual.

We actually met five and a half years ago online,

on a hypnotherapy forum.

-No!

-Yes. Yes.

And he joined it and I said to my friends, I said,

"It's so strange, but I feel I know him."

And they said, "What do you mean, know him?

"I mean, he lives thousands of miles away."

I said, "Yeah, but I know him. I don't know why, but I know him."

So, why thousands of miles away?

Cos I was living in Israel at that time

and she was in the UK.

You know, just on an online forum,

-it's just like talking to your neighbours.

-No way!

-Yes.

So, she sent me a friend request. I accepted, I saw a nice girl

and a day later, she says, "I know you."

"Ooh, you know me? Really? Where from?"

And then she said...

You know, she just talked about this past life regression

and all kinds of things like this, and it was fascinating to listen.

And then she told me in which past life she met me exactly.

THEY LAUGH

-So, that was...

-Oh, wow! That's incredible.

# It all works out in the end... #

Angela wasn't kidding when she said it was unusual,

but it's nice to see they found each other.

# Ah, but in another life... #

They've been married for three and a half years

and this will be their second renovation together.

But why this house?

-We loved it, both of us. Yeah.

-Yeah, the space, the feeling.

You know, nothing fazed us or put us off, because we...

-The mould and the damp didn't...

-No, it didn't bother us.

..deter us in any way because we thought it can be sorted out.

And we loved the three double bedrooms over there.

Three lovely, double, huge bedrooms.

-The family bathroom, as well, is a decent size, isn't it?

-Yes, it is.

There seems to be a lot of floor space everywhere.

-Are you changing that layout at all?

-Er, well...

-Keep the layout, but...

-..a little bit because,

in the master bedroom up there, I'm going to put a lovely en-suite.

Good man. That was my next question.

-Yeah, it's just asking for it, basically.

-Yes, yes.

And in the main bathroom upstairs, it's a lovely size, as you said,

but it's a bit dark for my taste.

So, we're going to open up a new window there

-to bring in more light...

-OK. That's good.

..and change everything there. Everything ultra-modern.

-Everything spacious.

-Yeah, brilliant.

What about down here? Cos there's a lot of space down here too.

The whole kitchen is going to be changed -

completely new, modern.

-Erm...

-Then there's the door.

-..nice flooring.

Open a door here and create a little utility room

with a ground-floor toilet.

Steal a little bit from the other reception room

and create that, because there are two reception rooms.

So, if I steal a little bit from it, nothing drastic will happen.

-It won't be missed.

-It won't be missed. Exactly.

You know, are you going to get somebody in to do that for you?

Yeah, absolutely. I'm in the process of interviewing various builders.

Interviewing. I like that. Interviewing! I like that!

Yes, because it's extremely important who is doing the job,

and that we think along the same lines,

you know, and we think alike and everything.

So, I haven't finished that process.

You mentioned quite a lot of things that you want to do here.

What's your budget for all the work?

-Erm, around 35,000...

-OK.

-..with a little contingency.

-Just in case.

-You know, like, maybe 10%, just in case.

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

Around ten to 12 weeks.

Now, is this something that you want to continue doing?

We are... Yes, I definitely want to continue this...

-Yeah.

-..because it gives me...

-It's enjoyable.

-..a lot of enjoyment and satisfaction.

-OK.

-Yeah, and we'll see how it goes after we sell it.

-OK.

And then we continue.

So, when we come back and you're finished -

three months, four months, whatever it may be -

what can we expect?

When we walk through the door, what will we see?

You're going to expect a house

that you would love living there yourself.

-I can promise you that.

-What more can you say?

-Angela, good luck. Hope it works out for you.

-Thank you.

-Itzhak, good luck.

-Thank you so much. Thank you. All the best.

What an amazing couple they are and what a beautiful story

about how they came together to meet each other.

But now the hard work starts and they need some help.

So, Itzhak, as we've heard, is going to be grilling builders,

but will he find the right person to do the job?

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

Coming up - this property in Thornton Heath

in the Borough of Croydon is a downstairs disaster.

So, can it get much worse upstairs?

Yeah.

And Itzhak and Angela have had to do the works

in the Amman Valley, Wales.

What we've done here is basically everything.

-MARTEL:

-We head back to the seaside now

and the village of Dymchurch in Kent.

Half a mile from the coast is where I found

this three-bedroom, detached bungalow

that had a guide price of £220,000 to £225,000-plus.

This property was spacious and light.

Yes, it was a little bit dated, but with such big proportions,

not to mention a conservatory and garage, I was very impressed.

Bungalows usually prove popular with buyers,

so it was no surprise that it sold for £246,000.

Sold, sir, 246,000.

The successful bidders were friends and first-time business partners

Chris and Andy.

Chris and Andy worked together as police officers,

but with Chris recently retiring,

they decided to dive in to the property market

and Chris thought he'd bagged a winner.

# Call the police

# Hurry, hurry! Won't you call the police? #

And, in some ways, it's a safe bet, because there's no damp,

it's structurally fine,

you know, it's quite easy to do in some respects.

# Famous last words

# Yeah, yeah, yeah Famous last words... #

Well, that might have been tempting fate.

As we all know, the property game does throw up the unexpected,

but they had spotted a way to add value.

Potentially, looking at, subject to agreement and discussion,

using the garage as an extension to the building

and perhaps making the main bedroom bigger

and having an en-suite off of that.

As well as extending into the garage,

they wanted to open up the kitchen

to create a more open-plan living area.

They had a budget of 15 to 20 grand for the project

and hoped to complete it within four to five months.

# Please won't you call the police? #

SIREN BLARES

So, ten months later, we returned to find out how their efforts rank.

By knocking down walls, as well as removing a chimney stack,

they've been able to open up the kitchen,

creating a lovely breakfast area that leads into the living space

through really attractive French folding doors.

And, true to their words, they've extended into the garage

by taking space from the old master bedroom.

They've created a corridor that leads to the new,

enormous master bedroom, complete with modern en-suite.

So, what was once a three-bed, one-bathroom property

is now a four-bed, two-bathroom property.

The family bathroom is now modern and fresh and bigger.

The entire property has been replastered, rewired, repainted...

..new central heating, new boiler - new everything!

Having used the existing garage to create an extra bedroom,

they decided to build an extension to create a new garage.

Now, THAT'S going the extra mile.

They really have made the most of this property,

executing practical and well-thought ideas

to make a modern, bright, and very appealing home.

But was it as easy as Chris thought it would be?

We haven't had any major problems, to be honest.

It's been a steep learning curve

because we didn't know any tradespeople -

only that you would find from perhaps the internet or whatever.

So, that was quite hard to start with,

but we got in amongst the local tradespeople

and we found some good ones.

We've project-managed it on a day-to-day basis

in relation to who we've had come in.

Builders... You know, materials, collecting materials,

making sure people have got the right stuff to get going.

Done most of the labouring, as well...

..as well as, you know, the first fix on the electrics.

-Laid all the floor.

-Laid all the floor, yeah.

Skirting's laid. You know, pretty much done by myself.

I'm not the most handy of people,

so he certainly didn't expect that of me.

But I think the partnership has worked out quite well in that

because, then again, he's not got to worry about me interfering.

But I was able to pay the bills when they were needed.

So, no good cop, bad cop here.

Just, er, good cop, good cop.

But with so much work done,

how's that 15 to 20 grand budget looking?

We've added the extension, which was quite a large expense,

and also we've gone for a high-end finish.

And I think, as we stand now,

although I'm waiting for a final request for money from Chris

for the last few bits that he's spent,

I think we've spent about 50,000 to 55,000.

We estimated three to four months.

It's turned out it's taken seven months

to actually get to this standard.

So, yeah, another thing we've learned -

-it takes longer than you think.

-I think Chris has done a great job

in what he's done and managing all the trades.

Got a good finish and, as ever, it costs more, takes longer,

but I think we expected that from the beginning really.

So, all in all, they've invested a total of £301,000

on their first property project.

But has it been a wise investment?

We asked two local estate agents to take a look

and give us their opinions.

The property's been renovated to an excellent standard.

They've extended it.

It's modernised throughout

and it suits sort of modern trends, as well.

So, it looks great and I think it will be very popular.

The standard of the finish, I think, is brilliant.

I can't see much where he hasn't not done anything to a great standard.

It all looks immaculate to me and I think it's fantastic.

The selling points, without a doubt, is the space, the standard,

the amount of parking it's got.

It's the full package here.

They seem more than a little keen, so let's get down to it, shall we?

Valuations, please!

Having had a chance to look around the property,

I would recommend marketing at £350,000.

And as for rental, I would recommend £1,000

to £1,100 per calendar month.

The retail price on this property would be between £350,000

to £375,000.

And as far as rentals are concerned, I think you'd be looking at £1,000,

or thereabouts, per calendar month.

That top rental figure would equate to around a 4.5% yield,

and that higher valuation of £375,000

would mean a pre-tax profit of 74 grand,

which is a very healthy number indeed.

So, with their first property under their belt,

will they be investing again?

Yeah, I think we'd definitely consider buying one again.

Yeah, I would like to do another one, do at least one more,

and see how we get on and...

-Have a rest first.

-Yeah, definitely.

South London now and Thornton Heath in the Borough of Croydon.

It is a popular area,

notable for its predominantly Victorian buildings,

including some handsome churches,

and it's fairly well connected to the city by bus or train.

Well, Thornton Heath is a deservedly popular spot.

So, £300,000 as a guide price for a three-bed mid-terrace

sounds definitely worth investigating.

It is a classic case though of definitely being

the worst house on a nice street.

But as we know, that is a good thing.

-# A good thing

-Yeah, yeah, yeah

-# A good thing

-Come on, baby... #

Actually, before we look inside, come and have a look at this,

because as I was walking down the path there, I noticed this tree.

Look how close that is to the fabric of the building.

That is not good news at all.

Who knows what sort of damage that's done to the foundations?

I think you can't just take it away because that would then die

and potentially the roots would cause even more problems.

It's just a... It needs a specialist to look at that.

What's the actual house itself like?

Well, er, first glance,

it's a little bit tired, shall we say?

"In need of a little bit of sprucing up,"

he says, massively understating.

Let's just look at the size of the rooms, though. Really good.

You've got your living room here - big, big, big space.

And I don't know why - I guess that's the little bay area

where the tree's on the other side of -

but rather than being the sort of traditional bay-window shape,

this square shape, it just gives a really nice size to this room.

So, that's a good start.

Fairly dilapidated though, isn't it?

Definitely in need of tender loving care.

Back into the little corridor area.

You've got a rear sitting room there.

Quite nice space. Some nice stained glass at the end.

Again, really good size.

And then it all starts to go a bit wrong,

which is where we start thinking about removing some kind of...

Oh, I don't know. Some of these walls, basically.

Under the stairs, a bit of storage.

-And you're going to love this room.

-HE CHUCKLES

The kitchen.

Just feast your eyes on this. Lovely!

# Yum, yum, yummy Got love for my tummy

# Yum, yum, yummy Got love from your honey

# One man's leftovers is another man's feast... #

Yes, you could have a lot on your plate if you took this house on.

The renovation costs could be hard to stomach,

but I've not been put off. Let's look upstairs,

although I could probably manage that from here!

So, can it get much worse upstairs?

Well, er...

-..yeah.

-HE CHUCKLES

I think it can! Look at that bathroom!

I'm not even going to go in there.

You can actually see daylight through the floor.

Corresponds with the huge great hole

in the ceiling downstairs in the kitchen.

So, that really is a terrible state, as are the bedrooms.

But anyway, forgetting the condition,

cos I think you have to at this stage with this property,

you're just looking at the size of the rooms

and what you've got to play with, and I really like it.

It's odd, isn't it? You know, you go to a house like this and go,

"I really like this place."

It's good-sized rooms. I like the layout.

You know, the location's pretty spot-on.

Yes, it's in a right state. You don't know what you're going to find

when you start taking up carpets and stuff like that. Clearly, you're going to have to replace

things like the radiators and all the central heating, but intrinsically,

there's an opportunity here to put a lot of value into this property

and that is a developer's dream.

# I had a bad, bad dream last night... #

I don't think I'd want to take 40 winks here any time soon,

but it's time to stop hitting the snooze button

and wake this property up into the family home it should be.

Let's see if the garden lends itself just as well to family living.

Well, it's a bit of a blessing to come out of the property... Eugh!

..into the rear garden, if you can find it.

Again, major tree issues going on.

So, you're going to have to have these taken out.

Of course, the issue with that is, how do you get rid of the stuff that you chop out?

It's going to have to all go through the house.

The downstairs loo...

-HE CHUCKLES

-Downstairs loo! The outside loo there.

And, you know, another example, from the outside,

of quite what a state this property is in,

but we've already established that.

It is what it is and it doesn't detract from the fact

I think it is still a brilliant project.

And as I said, the worst house on a good street,

so it'll be useful to find out more about the area generally.

We invited a local estate agent along to tell us more.

The area that we're in at the moment is classed as Thornton Heath.

However, it borders Norbury.

Thornton Heath is a CR postcode, being Surrey,

whereas Norbury is a London postcode, being SW16,

which makes it quite appealing,

because it's on the border of a more expensive area.

What about the house itself?

Well, it's a bit of a disaster, isn't it?

I mean, the situation with the trees at the front

is particularly a problem as far as mortgage capability is concerned.

No doubt the new investors are going to remove those trees

and refurbish throughout, including rewire,

new central heating, new windows.

In fact, there's not much that doesn't need doing here.

Could it all be worth it in the end,

bearing in mind the guide price is 300,000?

What kind of figure could the house achieve

on the sales market once renovated?

Once this property is refurbished,

its value is in the region of £475,000.

Well, possibly not a project for a property-developing novice,

but a house with lots of potential, I think,

if you can see through the state it's in,

look at where it's located and the value you can add.

Yeah, a good one. Let's see who bought it when it went under the hammer.

Well, we filmed the auction on the day, but unfortunately,

we don't have footage for this particular lot.

However, it sold for 370,000.

And Fiona, who works for a development company,

has come along to tell us about the plan for this house.

-Fiona, lovely to meet you.

-Hey.

-Congratulations.

Er, you've got your work cut out a bit with this place, then?

Yeah, just a little bit.

Tell me why you wanted to buy this house though.

Erm, I felt like it had the most scope

of some of the other houses that we had seen,

and I wanted to offer a family home back to somebody,

as opposed to the average two-up, two-down.

-OK. So, the idea being to do it up and sell it on, then?

-Yeah.

-So, you were looking for something that definitely needs a bit of work?

-Yeah.

-You've certainly found it!

Tell me about you. Is this something you do all the time or what?

-Now, yes.

-Right.

So, I gave up my job to do this instead.

-Oh, wow!

-Just, yeah...

-When?

-Erm, a month ago.

-Oh, wow! What were you doing?

I was a teaching assistant in a local school.

And what made you suddenly decide to jack in that job and start on this?

Well, my family's done it for many years.

They've bought and built either from scratch or done up, sold on.

-And you?

-No, this is my first one.

-A brave move, though.

-Yeah.

-Hopefully, the right one.

-Yeah. Well, how do you feel at the moment?

-Nervous.

-Nervous?

-But excited.

-Yeah. What's the worst-case scenario?

-That me and my family have to move in here.

-Right, OK.

I don't think Fiona's three kids would thank her for that.

So, there's a lot to play for on her first project

and a lot to do.

What needs to be done with the place?

So, clearly, it needs a complete gutting

and then we have to do the double glazing,

rewiring, central heating.

Going to knock down a couple of walls

-and create a kitchen/diner.

-OK.

Fix some floors, some ceilings, roof.

There are some nice original features.

Are you planning to keep many of those, if you can?

We want to keep as many as possible. So, some of the coving,

some of the skirting boards are really nice.

Some things, we might have to lose, but we want to keep as much as possible.

Well, that's nice to hear. And, obviously,

one room that's going to need a lot of attention is the bathroom.

-What are you going to do with that?

-Well, first, probably a new floor,

so we can actually get into the bathroom,

and then gut the whole thing and eventually get a bath and a shower.

Cos there's an immersion heater in there, I believe,

-that we want to get rid of.

-Yeah.

-Put a shower in there.

What about the tree?

Cos, obviously, the tree at the front is a bit of a worry, isn't it?

Yeah. So, we've spoken to some horticulturists,

who've said it's fine to take them down.

They'll take them down, so...

And do you know if it's done much damage

-to the foundations and things?

-It doesn't appear to have done,

but we have to take it down in stages.

Not all trees cause issues and it's always best to take advice,

just in case you make matters worse

by changing the ground conditions too much too quickly.

What about the garden at the back? Cos, obviously, you can't see it at the moment,

but presumably, there is one out there.

Once the trees have gone, I believe it's quite a good size.

-Yeah.

-But they'll be done at the same time.

Quite a list of works, but Fiona has a pretty generous budget

of 60,000 to get it done,

and has a trusty team of family-recommended builders

ready to start on the project.

And judging by the time scales,

the former teaching assistant knows a thing or two about timetables.

I want it done in 12 weeks.

-Oh, wow! OK.

-And I'm pushing for it to be done in 12 weeks.

-And then on the market and onto the next one?

-Yeah.

Literally, at the end of the third month,

-it needs to be up.

-And in terms of doing this again,

I mean, are you going to wait and see how this one goes,

or do you think this is the start of something big?

Erm, I'm ready for the next one.

-Already?

-Yeah. I enjoyed the whole auction and...

-Did you?

-Yeah. My mum used to be an auctioneer.

-Oh, did she?

-Not for property, but...

-So, I was always kind of behind the stage, listening to her.

-Oh.

So, it was weird being on the other side.

-Yeah.

-And I was shaking. I couldn't... The adrenaline...

I couldn't cope at all with it. At the moment, it's exciting,

-but ask me again in five years.

-Well, yeah.

-From your yacht in the Bahamas or wherever.

-Well, exactly.

What kind of involvement are you going to have on a day-to-day basis?

Are you going to be marshalling the troops,

or getting your hands dirty, or what?

-Not getting my hands dirty.

-Right.

But I'll definitely be here and around.

-Great.

-Randomly calling.

-Randomly calling,

just to check they're doing what they're supposed to be doing.

Oh, that's funny. Good. Well, congratulations.

Good luck. I look forward to seeing how you get on.

Thank you very much. HE CHUCKLES

Well, former teaching assistant Fiona

certainly seems to have done her homework on this one.

Has she got the maths right though?

60 grand? Well, it seems OK to me.

Will it be an A-plus conversion?

You can find out when we return later in the show.

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

What about the other two?

Yes, would they have fared any better?

Well, let's wait no longer to find out.

We head back to the south-west of the Brecon Beacons,

near to the village of Glanamman.

It was along this busy road I looked around this three-bed,

detached property that had a guide price of 60 to 65 grand.

Two nice-sized reception rooms either side of the front door,

but it was in the open-plan dining/kitchen area

that an all-too-common issue emerged.

As soon as you come in, you can see this damage in the corner.

This is damp, a bit of water, bit of moisture.

Somebody's already started to investigate that,

and that mould seems quite fresh.

-# Oh, no, not you again

-Oh, no, not you again

# I've paid you already too much times ten... #

Despite the damp problems, this property had bags of potential

thanks to its impressive proportions throughout.

Could you put an en-suite in here?

Of course you could. Plenty of space in here to do that.

You could actually put an en-suite into one of the other bedrooms

as well, or even both, there's that much space up here.

There were plenty of interested bidders on auction day,

but there can only be one winning bid...

Yours, sir. Very well done.

..which went to husband and wife team Angela and Itzhak.

This would be their second renovation project,

and with plans to alter the layout and add an en-suite,

Itzhak wasn't taking any chances.

I'm in the process of interviewing various builders.

Interviewing. I like that. Interviewing! I like that!

Yes, because it's extremely important who is doing the job

and that we think along the same lines,

you know, and we think alike and everything.

The careful couple had a time frame of ten to 12 weeks

and a budget of 35 grand to get this property

up and ready for the sales market.

Well, it's now six months later and we've returned to Wales

with our fingers crossed.

Wow! This kitchen/diner is now ultra slick and modern.

That mould and damp is nowhere to be seen.

A door has been created to the side of the kitchen

that leads to a very handy downstairs toilet.

As for those previously dull and dated reception rooms...

..by making the second reception room smaller,

they could create space for that toilet.

And upstairs, the creative and practical ideas continue.

A stunning en-suite has been added to the master bedroom,

making use of that dead space.

Each bedroom is looking fantastic with new carpets, walls,

and a lovely finish runs throughout the whole property.

The family bathroom is entirely new...

..and they've cleverly created an extra window,

making it so much brighter.

Outside, and they've done away with those outbuildings

to create space for two cars, which, on such a busy main road,

is an invaluable asset.

The garden is still a work in progress,

but it's not a jungle any more and it's a fantastic sight.

Itzhak and Angela have obviously really thought about

how to improve this property and it shows.

They have done absolutely everything here

to create a wonderful family home.

It must have been all those builders you interviewed, hey, Itzhak?

So, I interviewed several.

A time well invested, well worth it for me, basically. Yeah, so...

What we've done here is basically everything.

We changed the kitchen. We changed the bathroom.

-En-suite.

-Created an en-suite, created a ground-floor toilet.

-New windows.

-New, double-glazed windows.

New flooring. New carpets.

Rewiring the whole house.

Re-plumbing.

Obviously, new bathroom suites, as well.

-Everything is just all new, isn't it?

-Yeah.

-Fantastic tiles in the bathrooms and kitchen.

-Yes.

And I really splashed out some money on those

because I said, I said, "Yeah, let's make it nice."

So, no expense spared,

but how is their 35 grand budget looking?

I think, overall, it came up to around 43,000.

So, I'm still very happy with it because I see the result

and I think the additional money spent

was well worth it and I don't mind at all.

I thought it would not take much longer than three months.

We took, in fact, double that.

-I think we've done well.

-I think the result justifies

-the extra time spent on it.

-It does.

And I think, because we wanted to spend,

you know, a good amount of time getting things perfect,

-it's taken us time.

-Yeah, we don't mind six months.

No, no problem at all.

So, including the purchase price, they have invested £128,500.

And with their thoughts firmly on the sales market,

it'll be interesting to hear the opinions of two local estate agents.

The house has been renovated to a good standard.

It's a good location, close to

all the local amenities.

Erm, and, you know, I'm pretty certain

it will sell well in the current market.

I think the layout works really well.

The downstairs toilet and the en-suite works perfect for a family.

The en-suite is an important part.

Everybody seems to expect them these days with the modern builds.

So, I think it's a good selling point.

The agents do seem impressed with the work done here,

but will that reflect in their valuations?

I would think that this would probably sell for around £155,000.

I'd recommend an asking price of 159,950.

This property would be worth, in the sales market,

somewhere around £160,000.

I think they're pretty good profit margins. Yeah, yeah.

So, obviously, naturally, we'd be happier

if we could get the higher figure. Yeah, make it even more.

-So, yeah, I think it's quite good. Mm-hm.

-Yeah, we are happy with it.

-We are.

-Yes. No problem. No complaining.

That's good to hear.

The higher valuation would mean a pre-tax profit

of 31 and a half grand.

But has it been worth all the hard work?

It's like taking an ugly duckling

-and turning it into a beautiful swan.

-Yeah.

This is how I feel about this house.

We head back now to South London,

and the very popular area of Thornton Heath

in the Borough of Croydon.

It was here that I looked around this three-bed,

mid-terraced property that had more than its fair share of problems.

Before we look inside, come and have a look at this,

because, as I was walking down the path there, I noticed this tree.

Look how close that is to the fabric of the building.

That is not good news at all.

Who knows what sort of damage that's done to the foundations?

# Can you dig it?

# Oh, yeah

# Can you dig it?

# Oh, yeah... #

This ramshackle tree house was in seriously poor condition

inside and out, with every corner needing vital work.

Look at that bathroom! I'm not even going to go in there.

You can actually see daylight through the floor.

It corresponds with the huge great hole

in the ceiling downstairs in the kitchen.

So, that really is a terrible state.

Despite the long list of problems here,

it was a popular lot on auction day

and sold for 370,000 to first-time property developer Fiona.

So, I gave up my job to do this instead.

-Oh, wow!

-Just, yeah...

-When?

-Erm, a month ago.

Oh, wow! What were you doing?

I was a teaching assistant in a local school.

-Brave move, though.

-Yeah. Hopefully, the right one.

-Yeah.

-Well, how do you feel at the moment?

-Nervous.

# It takes a leap of faith to get things going

# It takes a leap of faith You've got to show some guts... #

Fiona's family have a property-developing background,

so at least she would have contacts to advise.

I thought the budget of £60,000 was pretty reasonable,

but Fiona was hoping to have this house ready for resale

at the end of three months. Was that a tall order?

Well, it's now six months on, and the trees have gone,

and the outside of the house has been transformed.

So, what about the inside?

The separate kitchen and rear reception room

are now an open-plan kitchen/diner, complete with bifold doors

leading to the now clear and landscaped rear garden.

A very handy extension houses the utility room,

which also brings the outdoors WC indoors.

The front reception room is now clean and fresh.

The restored original banister adds that little bit of character.

Upstairs, and the bathroom is unrecognisable.

A new floor has been fitted and, of course, a brand-new modern suite

that's in keeping with the period of the house.

The three bedrooms here have been transformed into a desirable space

that anyone would be happy to call their own.

Every corner of this property has been improved.

There's a new roof, bathroom, new kitchen, new electrics,

new plastering and, of course,

it's been painted from top to bottom.

This property has had a complete makeover

and it's absolutely stunning.

This is the first time buying and renovating.

It's been a complete change of career for me,

but I've really enjoyed the creative - the design - part,

the interior design, the choosing the fixtures and fittings.

I've really enjoyed that.

I know this is a big project that I took on as my first project,

but when I was going to the auction,

I wanted to see what this house looked like at the end,

and the only way I could do that was if I bought it,

so that's what I did.

And here we are.

One of Fiona's big issues here was the trees

front and back of the property.

So, the tree at the front of the house

that was coming out of the bay window -

we were worried that it was going to cause a problem for us

with the foundations, but it turns out, after removing it,

there were no problems, everything was fine

and we were able to continue.

We thought initially that we would only have to repair the roof,

but once we removed the trees,

we realised the roof needed completely redoing

and we didn't have a choice, so the house has a new roof.

With an unexpected new roof and the small extension onto the rear,

on top of all the other work here,

how has her budget and strict timescale of three months fared?

So, originally, we had set the budget for 60,000,

but because we've had to put on a new roof,

the new extension, the bifolding doors,

and given the house a really high finish,

our budget now is 85,000.

I was sure it was only going to take about three months,

but when we gutted the whole property,

we realised it was a much bigger job than we initially thought,

so it's taken about six months.

Make no mistake, taking on a project like this

would have been a big challenge for anyone,

let alone a novice with three children to bring up!

Fiona has done an amazing job at project managing,

but will this former teaching assistant

be top of the class?

We asked two local estate agents along

for their opinions on what Fiona's done.

The place looks absolutely fantastic.

I think the owner has gone through

and done a full renovation project here

and it looks really, really nice. Looks really good.

Selling points - I'd probably say, the actual kind of

open-plan space downstairs

with the big island kitchen and the bifold doors.

Again, it really is something that people love nowadays.

The agents are impressed, but with Fiona being keen to sell

and having invested a total of £455,000

into the property, will the sums add up?

The resale value for this property will be £525,000,

and I think the rental of this property

would be £1,600 per calendar month.

This property would sell for approximately £525,000,

possibly £550,000,

and would rent for approximately £1,550 per calendar month.

A rental of £1,600 per calendar month

would mean a yield of just over 4%,

and a top valuation of 550,000 would result in a pre-tax profit

of £95,000,

which is a brilliant and well-earned result for Fiona.

And I think it's just the beginning.

I will be buying at auction. I really enjoyed the process

and I will be buying another investment property.

I've already seen the property I've got my eye on and I will get it.

Now, have today's projects inspired you to get into property developing?

Yes, and I think there's a few of you out there

chomping at the bit to get involved as well.

Yes, join us next time for more inspirational ideas

-here on Homes Under The Hammer.

-Bye-bye.

-Bye-bye.

-Goodbye.