THIS run-down house has sold for nearly £3.5million to set a record for Sandbanks.

The price paid for the shabby home on the sandy peninsula in Poole, Dorset, equates to £1,725 per square foot, well above the existing record of £1,364.

The house has four bedrooms, two bathrooms, three reception areas and two balconies.

But the unnamed couple who have bought it intend to demolish it.

However, Poole planners have refused permission, saying that the house proposed would dominate the shoreline.

It enjoys one of the best locations on Sandbanks, boasting views of Poole Harbour from the front and the sea to the rear.

Although the existing 1950s house has no back garden to speak of, it does have direct access to the beach.

The property is one of the last of its type on the exclusive peninsula that has yet to be bought up and developed.

It is thought the new owners want to spend up to £1m building a modern, three-storey family home in its place.

Adrian Dunford, of estate agents Tailor Made, which sold the detached house, said: “The property was built in the 1950s, is in need of complete repair and has no architectural merit.

“But its location is considered an extremely rare opportunity given it affords a two-way view of both Sandbanks Beach and Poole Harbour.

“The internal living area is about 2,000 square feet and the price for it is a new record high for Sandbanks of £1,725 per square foot.

“The previous record was for a penthouse apartment that achieved £1,364 per sq ft in 2008.

“It is one of the last two-way plots that you can do something with for a sensible price.

“The couple who have bought it plan to have it as their main home.

“There is an option to refurbish it but it is likely that they will try and remove it and start over again from scratch.

“Judging by the properties either side of it, it shouldn’t be a problem to go up one more storey and a new house there could easily be worth £5m to £6m.”

Sandbanks is rated as the fifth most expensive location in the world to buy property, with only Manhattan, Tokyo, Hong Kong and London ahead of it on the prestigious list.