Episode 18 Homes Under the Hammer

Buying property has highs and lows.

It's not always as easy as it seems,

especially if you are stuck in a chain.

You can eliminate that by buying property at an auction.

Here in Stoke-on-Trent, there's a property which I think has got a bit of a story to tell.

Is there one house or two going under the hammer?

This flat in London may look a dull chap, but trust me, he's a fun-gi.

There's mushrooms and all sorts growing out of that.

These properties went to auction and we find out who bought them, and what they paid for them,

when they went under the hammer.

I've come to Stoke-on-Trent.

The terraces of middle England still seem good value

when you consider the average house price is often half that of similar property further south.

Well, here in Stoke-on-Trent, there's a property which I think has got a bit of a story to tell.

So, 27 and 25.

If a house has got two numbers, you don't necessarily have to be

a super sleuth to figure out that at some stage it might have been two houses.

But at the moment, this place is just one.

But as soon as you walk through the door, there are clues about its previous life.

You've got a kind of living room area there, this archway and then a living room here on this side.

Through to the rear, stairs down to a cellar,

a rear sitting room on that side and another rear sitting room on this side.

This side, though, has a sort of slightly commercial, industrial feel to it,

so maybe this place has a history of some kind of shop premises.

Interesting light fittings!

Beautiful ceiling rose with a fluorescent light fitting.

Up for auction today at a guide price of 85 grand is actually

a couple of old traditional two-up, two-down cottages.

At some stage, one of them has probably been used as a shop,

hence all the clues to its previous commercial life.

Since they've been knocked together,

there are still two of everything - two kitchens, two dining rooms and lots of floor space.

At a guide price of 85 grand, I doubt if it will concern many investors.

But out here in the back yard, there's something that might - a working commercial fridge.

What on earth has this place been used for?

And there are more hints of a commercial past

with this strange alley and roller door contraption by the kitchen.

So, what's on the first floor?

Well, upstairs, our matching two properties continue.

Here, in number 25, two good-sized double bedrooms.

And in number 27, two good-sized double bedrooms.

Back in 25, yep, a large bathroom and loo.

And in 27...

Surprise, surprise... a large bathroom and loo.

The big question of course is, is it going to be two properties

for the price of one?

As this is a rental and first-time buyer's market,

there's no need to go too overboard with the specifications.

We've heard it all before - keep everything neutral, with plain kitchen and bathroom suites,

and then this place could be transformed.

So, will our twin properties be double the trouble, or twice the fun?

And who's ready to take them on?

Let's find out at the auction.

Lot 58 is now 25-27 Fenn Park Road in Fenton.

Originally a shop premises.

But adapted for use as a dwelling-house some years ago.

Potential to re-establish as the two separate dwellings. So what shall we say for lot 58?

You could make two houses out of this. 80 to start me?

80 I'm bid now. At £80,000.

85 it is. At 85,000. 90 can I say?

I'll take one if it helps. £85,000.

86, can I say?

The bidder seated at £86,000.

New bidder. £87,000. 88, is it? 88.

89. 90.

91. 92.

93.

94.

95. 96. No?

At £96,000, seated in the aisle. 97?

No. At £96,000 then.

The bid is in the aisle at 96. Are we all done? I'm selling it at £96,000.

Against you, left.

The bid is there at £96,000...

You bought it, sir.

The new owner of this property with a split personality is Rob.

He paid 96 grand for it and he's a successful developer who specialises in the Stoke area.

He's developed around 100 properties in the last ten years.

The average is about one a month.

Why did you want to buy this place?

Well, we think we got a good deal, really, at the auction on these.

-I'm going to split them back into two properties.

-Oh?

Hopefully they'll realise their value once we finish the renovation works.

He's confident that a good clean-up and some decorating is the main requirement.

He's already got the numbers for his two new houses,

but how much has he earmarked to restore the two dwellings?

We are perhaps looking at around 20,000 to spend on it.

But hopefully, if we get the planning permission,

which is the crucial element of this venture,

we can then realise a value of the two properties.

This isn't a great deal required.

Both the two bathrooms and the kitchens would certainly do if the property was rented out.

The main expense could well be bricking up the dividing wall

which Rob discovered was only opened up about 10 years ago.

What do you know about the history of the property?

Well, they were actually built around the 1900s.

Three Reverends, apparently, invested in the area.

Then in the 1950s it was a greengrocer's shop until 1997.

Which then, the owners at the time who had run the shop, changed it back to residential use.

They converted it to one dwelling,

where if you're changing back to one dwelling, you don't need planning permission.

But us converting back to two dwellings, we do need persmission.

I can't imagine any major objections to the two properties regaining their own letter-boxes,

but it is round the back that Rob's plans could be frozen out.

This is the fridge that you've got in your back! What the heck are you going to do with it?

Well, this may have to go. At present, the butcher uses it

across the road at Christmas time and various times of year.

But according to the planners, and we have to see what the position is with it.

You'll need to get a specialist in to take it away?

Yes. It is still in working condition.

So we'll probably try to sell it on and see what offers we get.

What would you do with the space?

With the space, we'd have to re-flag the yard and turn it back to its original state.

Well, I'm sure this investment won't turn into a turkey for Rob!

After all, he's got vast experience in the property market and once he has got

that all-important planning permission, the real work can start.

So, how long is it all going to take?

Well, the renovation work should take six weeks to convert the two back into two dwellings with new kitchens,

new bathrooms, decoration. And hopefully ready for tenants!

So is that the plan, to rent them out, then?

Yes. I'll add these two to our portfolio.

-We're getting a good rent on one next door...

-You own the house next door?

Number 29! Yes.

So it will give us an ideal chance to have three properties in the same area,

which is perhaps better for letting.

-What of the future?

-The future?

Well, hopefully we want to try to achieve 20 refurbishments

this year for the buy-to-let side.

And perhaps a few new-builds as well.

But what could take the time here could be separating two very old builds.

If the planning department agrees that their number is up!

Well, Rob's certainly got the experience.

But how is he going to get on separating our twins?

Find out later in the show.

There are some parts of London that are exciting to be in right now

and Tottenham is one of them.

It may not look that great at the moment but what if I was to tell you

there were thousands of pounds of regeneration money being poured into the area?

It's certainly looking more attractive, isn't it?

When it comes to Victorian houses, Tottenham has got streets of them.

Over the years many of them have been converted into flats

and that's exactly what I've come to have a look at today.

Here's the property that's up for auction.

I've got to say, it's really promising.

It's got some lovely traditional Victorian features - beautiful sash windows.

You've got these tall pillars with fine detailing above it.

The guide price? £105,000.

It's quite exciting, isn't it?

I'm going to have a look around.

Interesting exterior, so what's it like inside?

It's incredible how these high ceilings give you such a sense of space.

You can see how poorly decorated it is in here.

It's awash with woodchip wallpaper everywhere.

But a fantastic reception room, incredible space, lots of light coming in through that window.

Really airy.

But the thing I like is the floorboards.

They are in mint condition.

They would look fantastic painted.

That's a really good look at the moment.

We've got a bathroom here. That probably needs to be changed. It's a bit old and tired.

But it's very open - straight through into the kitchen.

Again you've got this wonderful ceiling height.

All of this needs to be completely ripped out and something new and modern installed.

But you know how I'm always going on about I'd like to knock through from the kitchen into the garden?

Look at this. We can do just that.

This garden is a real plus.

It's a good size, but you do have to share it with the upstairs flat.

Back in the kitchen, I reckon you could get a bit of extra space by knocking down that corner wall.

And you might squeeze in a table and chairs.

And the potential for more space doesn't finish in the kitchen.

Now, this is one big bedroom. It's certainly a luxury.

You've got three lovely big windows here.

Lots of space. I quite like it.

But there's something that does worry me.

It's these two big holes up here.

If you look closely, there's mushrooms and all sorts growing out of that.

Over the next few years, the council plan to expand housing,

improve leisure facilities and take a look at the transport in the area.

There's a bit of a buzz about the place.

Could be a good time to invest.

This flat has access to a garden and is within striking distance

of a Tube station which gets you into central London in 15 minutes.

That ticks two of the crucial boxes but most importantly...

is the price.

As is, Lot 17, 16A Colles Road, Tottenham, N15.

This old flat.

We've got a phone bidder on this, someone on the phone.

Start low. We've got low reserve. 100,000 anywhere? 100, over here?

105, 110, 115, 120,

125?

121? 121? 120, down here.

125, 130. 135, 140.

145.

150, 155? 155, anywhere?

155, new spot. 156, sir, 156?

155, standing against the wall, looking for 156.

First bid - £155,000.

156, back in.

157.

158. 159.

160. 159.5, sir?

159, with you.

159.5 by the door? If not, 159.

First time, second time, third and last time, have we all done?

The successful bidder who came in at the end there was Daniel.

He paid 159,000 for the flat for himself and his girlfriend, Anita, to live in.

Daniel's studying for a master's degree and they've recently moved to London from Prague.

Anita has not seen inside yet.

She didn't go to the auction and left the bidding to her boyfriend.

Today is the first time she's seen what he bought.

Before they tackle the flat, they've got to acclimatise.

How are they finding life in the city?

Difficult.

-Stressful.

-Why?

The pace of life is just so high.

You live in a small town and you get used to the slow pace of life and taking things easy

and suddenly, you're in a rush and there's people everywhere.

It's a big, big culture shock.

Forget about a culture shock.

Anita could have been in for an even bigger shock when she walked into this flat for the first time today.

She trained as a designer and had already sketched some plans

before she saw the place but they may well have to change when she sees the state of the bedroom.

Now, guys, what are you planning to do to rectify this?

What's all this, Daniel?

I don't know, actually. I'm hoping that it's not a big deal.

I'm kind of hoping that it's just replace the ceiling and it will all be fine. I don't know.

I'm hoping it's not damp.

What do you think you're going to have to do to rectify this?

Talk to the neighbours, get them to fix their pipes.

Take the ceiling down. Put it back up.

Straightaway, that has eaten into your budget, hasn't it?

Definitely. We were hoping not to make any big structural changes.

We were hoping that it was going to be superficial work.

Lick of paint, a few tiles, and we're off, but this is going to be a bit more serious.

How much money have you got to spend?

-25 quid.

-Something like that!

We are talking very optimistically about something like £5,000.

Buying things from auctions and just being very careful.

You have got a new kitchen, a new bathroom suite to think about.

And all of this. I think you may have to up it. Slightly.

You'd be amazed what we can do with £5,000. A bit of handiwork and a bit of artwork.

Anita's art's going to go up on the walls.

There's all kinds of little ideas we have.

With Anita's design background, she has a great eye for colour.

So I have a sneaking suspicion we won't see much magnolia paint here.

No, no magnolia in the flat.

What is your style, Anita?

I am a minimalist.

So I like to keep everything to the minimum.

Just plainness and flashes of colour.

-Are you just going to use colour on one wall?

-Yes, I think that's what I'm going to be working with

because if you put colour all around it will just make it more work.

Anita and Daniel have set themselves a challenge and a half.

That damp is a worry. Mind you, they plan to do a lot of the work themselves,

which will certainly help the finances.

Our first-time buyers, Daniel and Anita, certainly have their work cut out.

I am concerned, with all the work they have to do here, their five grand budget is overly modest.

Will they stick to it?

Well, join me later on in the programme to find out.

The seasons have changed since we last saw those auction lots.

Have the new owners been racing ahead with the work?

-Or has it all ground to a halt?

-Let's go back and find out!

Back in Stoke, we did some basic maths and proved that two into one would go.

Two terraced houses opened up into one large house.

Local property developer Rob bought the big, grown-up house for 96 grand.

But he wasn't going for the open-plan living look.

He planned to brick the wall up and give the two houses

back their independence.

Three months on, and clearly something's been happening.

A new front door has been added to the corner of the property.

And inside, as promised, both houses now have separate identities.

But of course, it's been twice the work for Rob's team, with two kitchens to refurbish.

But both are now looking very inviting.

With new laminate flooring and decoration throughout,

both houses are now establishing their own identity, and making their mark on the Stoke housing market.

Of course, it all relied on planning permission being granted, but it seems Rob's been successful.

There's certain jobs we could do before we'd actually got the approval.

So once the permission came through, to convert to two dwellings,

it was quite easy then, we were 80 per cent through the project.

Finished it on time, and it's turned out two good buy-to-let properties.

Like all good investors, he's only spent money when absolutely necessary.

We've actually done a re-plaster downstairs, but upstairs we've papered, paint and decorated.

If we were selling this house, it would be a different story.

We would definitely plaster throughout.

Rob's had various careers in the past, including mining and computing,

but started to concentrate on property back in 1999.

Since then he's bought and sold over 100 properties,

he's planning a portfolio of 50 buy-to-lets, and these two are numbers 21 and 22.

Well, here's the bathroom. We've put a new suite in here.

Made it all nice, bright and airy. Very clean.

We've changed the flooring from carpet to laminate.

The reason for that is if we lose a tenant, when tenants move out, you find that you can

spruce it up nice and clean and it's as good as new for the next tenant.

A good tip.

So, how have Rob's finances stacked up on this double refurb?

The total budget was £30,000.

And we were nearly at our budget.

28,000, 29,000.

Why has Rob decided to leave that old fridge?

There's many reasons with that.

Really, there's a cost element to removing the fridge.

But if it doesn't affect the property value, is there a need to remove the fridge?

Because then you've got to re-flag the back yard, redo the brickwork,

and you've got all the extra costs.

Our view on that was, if we padlock it up, leave it there, maybe in the future we can reconsider.

Maybe the fridge will put off prospective tenants.

Two local experts in the field of property,

as opposed to refrigeration, should know whether Rob's about to freeze his assets.

The yard isn't so much of an issue, because even unfortunately

with terraces where they do have yards,

quite often they can be quite small.

so it isn't necessarily space that you would sit out and enjoy the sun.

We'd expect to market this one at £74,950, and then the end terrace,

we'd expect to market that one in the region of 79,950.

£75,000 for each one I'd be happy with.

But if we got £80,000 on the end property, being a larger space property,

that would be very good, we'd be very pleased with that.

Rental value, I would have said £425.

Possibly a little stronger, in view of the fact that everything is nice and shiny and new.

We've put these on a little bit higher, with having a new spec inside.

And we've managed to achieve £450 rental on each of them.

Not only a good income, but Rob's letting agents have tenants desperate to move in.

But that's left Rob with a bit of a problem.

They have got two tenants ready to move in on Monday,

so we've got to urgently get the metering sorted out for the electric and gas now.

Well, at least it'll give the two neighbours something

to chat about over the garden wall of these two fantastic houses.

Back in Tottenham in London,

first impressions of this one-bedroom ground-floor flat were good.

Big rooms, high ceilings, and shared rear garden.

But with two big, wet holes in the bedroom, would anyone be prepared

to pay the ceiling price for the area?

Daniel and Anita had just returned from living in Prague and reckoned the flat was worth £159,000.

Nearly four months later, we've come back and the broken bay window is fixed.

The living room has been decorated, and Anita's artistic flair is shining through.

The fabulous floorboards are ready to varnish.

The kitchen's been ripped out and bright white units put in.

The bathroom has also been transformed.

But the huge bedroom remains.

It's not been split into two.

But hang on... The holes in the ceiling are still there!

Surely that was the first job to tackle?

Well, when we first moved in it was...

We thought it was one of our priorities, to basically replace them, get a new ceiling in,

but we had the problem fixed, the dripping pipes, and at that point it just...

There were other priorities.

And so it got left, and that's why it's still there.

Well, the holes remain, but Daniel and Anita have been busy ripping out all the old clutter.

Kitchen was a state, pretty much. There was a horrible old stove,

two or three horrible old units, and a collapsing wall.

So we had to have that done.

Once it's finished it'll be all white with greys and metal.

It will be very minimalistic, very clean, mainly because of the budget, but...

I think it'll look good anyway.

We started out with quite a small budget, I plucked a figure out of the air of £5,000.

-Everybody laughed at us.

-But...so far,

sort of £1,200 a room, we're kind of sticking to it.

They've shopped around for bargains, and it's not just the house that came from an auction.

The internet's been great, and then apart from that, actual auctions.

And if you've got a book and know where to turn,

doing it yourself is an excellent way to keep a check on your cash flow.

In the Czech Republic we renovated a property there,

and I've been using the book over there for the last couple of years.

Whenever I have a question I just turn to the Good Book.

Most things you can try.

-If it doesn't work out, then you just try again.

-Tiling, grouting...

my new best friend, I think!

Anita is a talented designer, as you can see from the bathroom,

the one area that is almost finished.

I'm quite happy with the bathroom.

It's not completely what I imagined it to be,

but I'm hoping the rest of the house will at least reach its standards.

Let's see what two local property experts think.

I think the kitchen is actually very well laid-out, in the right way,

coming out into the garden, which a lot of people will like.

They've really gone for it, with very modern bathroom fittings, it works really well. It looks so cool.

The couple paid £159,000 for the flat, and I reckon the budget could double to £10,000.

So they'll be hoping for a valuation over £170,000.

I think when the flat is finished it will be worth £220,000.

As a one-bedroom flat, once they've finished it, I think the value of

this property will be probably about £235,000.

£50,000 more! Or £65,000 with the higher valuation.

Well, you know, I mean, what can we do with that?

Yeah, no, that's fantastic.

We've still got a bit of work to do before we get there, but it's nice to know.

We're doing the place up the way we want it.

And we are planning to live here, but at some point in the future, it's always possible we could sell it.

-Yeah.

-Knowing it's worth this much, makes you feel a bit more relaxed when you have mortgages to pay.

Well, thanks to the Good Book, it seems Daniel and Anita have done pretty well.

But I'd find the chapter on fixings ceilings next.

I think that's definitely the one they need to turn to.

We'll be back next time with more interesting auction lots for you.

So join Lucy and I for more Homes Under The Hammer.

-We'll see you then.

-Goodbye.

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