A unique and historic clifftop property with "one of the most dramatic views in the country" has hit the market.

But there's a catch because any new owner cannot permanently live there as it doesn't have planning permission for residential use.

Yet the extraordinary building on the White Cliffs of Dover at St Margaret's, which sits in its own one acre fenced plot, could make the ultimate holiday haven and business, say agents.

The property is a former coastguard station which has been sympathetically extended and converted into a tea room with a luxury holiday apartment above.

But an application in 2021 for residential use, specifically manager's accommodation, was refused by Dover District Council and again on appeal, with the inspector citing potential harm to the “bleak and vulnerable” landscape .

He added "domestic clutter associated with permanent residential occupation of the property would risk harm to a highly vulnerable area of unspoilt AONB and heritage coast landscape".

The building occupies a truly spectacular location overlooking the English Channel and once played a vital military role during the Battle of Britain where a top secret revolutionary radar system, called Magnetron, was installed to detect incoming enemy aircraft.

So important was the building to the defence of the realm, it was protected by two anti-aircraft guns and retains an underground bunker. It even warranted two visits by Sir Winston Churchill during the war.

Now the owners, who bought it in 2015 for £1.4 million and converted and extended the building to create the businesses, are selling up.

They had previously offered the property in 2016 for an eye-watering £3.5 million when there were hopes that the National Trust might be interested.

But it never happened and the tea room business and holiday let continued until the pandemic lockdown, after which the tea room never re-opened.

Now the owners have put it on the market again for £950,000 and agents still believe it offers a unique business opportunity, especially since planning permission was granted for a second holiday let on the ground floor in the former tea room.

Principal agent at Marshall & Clarke, Perry Mercer says the owners are being "realistic" with its price, given the residential restriction.

But he still believes the property offers a unique business opportunity because of its stunning location.

"It really is a jewel in the crown on the Kent coastline with a fascinating history," he said.

“As you might imagine, it’s very solidly built but obviously, the residential restriction does hold it back. But there is scope to re-open it as a tea room or restaurant, which has 32 covers inside and 34 covers outside, while the holiday apartment above would provide a very high rental return.

"Now with permission for the ground floor to be another holiday let, that further adds to its appeal.

"But a new owner could simply use the apartment as their own very special holiday home."

The coastguard station has a fascinating history. In 1914, the land where it now sits was acquired by the Ministry of War and two huts erected and used as a signal station during and after The Great War.

In the late 1920s, they were replaced by a purpose-built brick coastguard lookout.

With war again looming, however, the significance of the site prompted the building of an underground operations room (35ft below the building) with two anti-aircraft guns sited to the rear.

Throughout the Second World War, the lookout played a significant part in the defence of the country, its position near 'Hellfire Corner' being central to the Battle of Britain.

It was also pivotal in the monitoring and co-ordination of shipping in the Channel which saw its importance acknowledged by Churchill who made two visits during the war to the underground bunker.

After the war, the lookout - now a fully equipped coastguard station complete with a radar scanner - continued its important role as the principal centre for the monitoring of what had become the busiest shipping lane in the world.

With this increase in traffic and the development in new technology the decision was made to build a new multi-million pound coastguard station nearer to Dover at Langdon Cliff. The old station was then decommissioned and in 1994 offered for sale by public tenure.