IF YOU have ever dreamt of owning a magnificent 17th-century palazzo in Italy, you may briefly be interested to know that you can now pick one up for the same price as a flat in a grim part of Battersea. But only briefly, because both flat and palazzo (see picture gallery) cost about £4.5 million, which says a lot about London house price inflation and not enough about the awe-inspiring beauty of Palazzo Ancajani, perched invitingly on a picture-perfect Umbrian hilltop.

The estate of Tenaglie, south of Orvieto, on which the house stands, has a dramatic history involving feuding families, money, murder, popes and football, thus according exactly with British expectations of Italy. According to research by David Giachini, the son of the present owner, Tenaglie was owned originally by the Baschi family, who had for centuries ruled the area from nearby Carnano Castle. After a gruesome massacre of a rival family branch in 1553, the Baschi estates were confiscated by the Pope, who invited the local population to tear down Carnano Castle. The ruins are still visible from Palazzo Ancajani today.

The Ancajani family bought Tenaglie the same year, sold it in 1630 to settle debts and bought it back in 1664 – by which time the interim owner had built the palazzo. The estate stayed in the family until 1957, when a severe winter destroyed the olive harvest and drove the owners into bankruptcy.

Palazzo Ancajani was then bought by the president of Roma football club, who, according to Giachini, wanted “to bring the team here as a retreat from the temptations of the big city”. He also went bankrupt, however, and sold it to an entrepreneur from Viterbo, whose wife and children disliked it, so it was sold on to Giachini’s parents, Vittoriano, a retired general in the Italian Air Force, and Gabriella, in 1986.

The house was then “very neglected”, says Giachini. “It had last been decorated after the war, with no consideration for historical accuracy. It looked bleak.” Peeling paint covered the vaulted ceilings and ground-floor rooms had been used for agricultural storage. “My parents spent 20 years restoring it,” says Giachini. “They consulted experts and even made special paint out of natural components that would have been available 300 years ago.”

Now, Palazzo Ancajani has been restored to its original splendour. Nine bedrooms with private bathrooms and sitting rooms range over three floors. Seven reception rooms include a frescoed salon, three drawing rooms and a dining room on the piano nobile(first floor), as well as a vaulted banqueting room and wine cellar downstairs. The land includes 2,000sq m of gardens and three hectares (7.4 acres) of woodland.

Vittoriano died last year and his widow is moving to Madrid to live with her other son, Stefano (David, an environmental engineer, lives in the US). “It’s very sad,” she says. “I love this house and the land and the views. But I can’t stay here all alone with no relatives.”

Roger Coombes of Cluttons’ Perugia office, who has valued Palazzo Ancajani at €6.5 million, says a buyer would have to be “rich and cultured. I took a newly rich Englishman to see it recently and he just didn’t appreciate it. The buyer needs to be someone mature and knowledgeable. In England this house would be a minor stately home. It’s more like selling a Picasso than a piece of real estate.”

Coombes expects an English buyer. “There has been a peaceful invasion of Italy over the past 20 years by the English, who come here for the atmosphere, the art, the history and the food. Italians come to us with properties for sale because they trust the English; they think we’re all gentlemen and drive Rolls-Royces.”

Giachini isn’t fussy about nationalities. He just wants a buyer “who will appreciate the history of the house and the passion that was put into bringing it back to its original splendour, someone who loves this part of the world, someone who will have a happy time in this house”. Cluttons Italy: 0039 075 8450100

Read our range of Times Online guides to buying homes abroad timesonline.co.uk/overseasproperty

WHAT £4.5M BUYS

So what can you get for a comparable price in London? A three-bedroom flat in Battersea (see slideshow, top). This riverside apartment is for sale at £4.5 million. It has three bathrooms, three terraces and is spread over three floors. The huge open-plan living area is sleek in style and has views over London. If you still prefer Italy, a Tuscan hamlet (see slideshow) can cost as little as £4.1 million. It has a spa, its own ramparts, 12 bedrooms and 26 acres. The tower dates from the year 1000 and one of the farmhouses is 15th century. It has all been restored in a chic, rustic style and the pool is set in an orchard. Contact Knight Frank for both (020-7629 8171).

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