Siblings set for £9 million windfall on family home bought for £7,000

Four siblings have reluctantly decided to sell their family home after it shot up in value from £7,000 to £9 million.

The large detached house overlooking Poole Harbour in Dorset was originally bought by Oswald Bailey, the British camping entrepreneur, in 1945.

Now his grandchildren, Stephen Bailey, Hilary, Alison and Nicola, have put the house on the market to meet a sizable inheritance tax bill following the death of the father and mother.

The 105-year-old house has risen in value by 1,200 times more than what was paid for it due to the success of the Sandbanks property market.

Read more: Couple told to remove 'dangerous' bike parking spot made from plant pots

Stephen, 68, said: "We have never had any money out of the house because the home has always been the important thing, not the money. But inheritance tax is driving the sale now.

"It is very sad but we have accepted it now. It will obviously be a wrench for all of us, especially my two sisters who live there.”

Alison and Nicola still live in the property where their mother Lalage Bailey passed away peacefully five years ago.

Their father Frank Bailey died in 2005.

Read more: Ming vase bought for £8.50 and 'used as doorstop' sells for £3,400

Stephen, who described the house as “the most wonderful place to grow up in”, said one of his sisters opposed the house being knocked down.

But whoever buys the six-bedroom property will most likely demolish it and build an ultra-modern, luxury mansion in its place that will be in keeping with the area.

Oswald sold the three-storey property to his newly-wed son Frank in 1949 for a discounted price and he and Lalage then raised their family in it.

At the time, Sandbanks was a desolate sandy peninsula and a world away from the exclusive property hotspot it is today.

The family used to have their own private beach until they had to build a sea wall in the 1960s due to rising water levels.

During their time there, the family have seen the sandy peninsula undergo significant development and turn into the millionaire's playground.

Adrian Dunford, of estate agents Tailor Made, added: "We have had interest in it already and we have had a bid that hasn't been accepted. That just shows the quality of the plot."

Once built a new modern mansion on the same plot is likely to be worth about £13m.

Oswald sold its 20 shops across southern England to Millets in 2014 but retained its online business which Stephen is still in charge of today.