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The race is on for Sandy's Mill

The Grade-1 listed, 18th-century East Lothian watermill that sparked a stampede seven years ago is on the market again

When Sandy's Mill last came on the market seven years ago, the open-viewing day nearly ended in a riot. There were so many visitors that traffic jammed the narrow access lane. "It was bedlam," says Stuart Williamson. "Worse than T in the Park." Eventually the police were called.

Even in those heady days of rocketing house prices, such a level of hysteria was unusual, but then Sandy's Mill was unusual. A Grade-1 listed water mill, complete with waterwheel and 18th-century machinery, it resembled a scene from a Constable painting, the perfect image of a timeless riverside idyll.

Better still, it was an idyll within a 30-minute drive of Edinburgh, on the River Tyne near Haddington. There were some drawbacks: the buildings were derelict, the layout was awkward to convert and Historic Scotland was insistent that the machinery should stay. This did not prevent 34 people from putting in bids and Williamson was amazed when he learnt his had come out on top. In fact, he hadn't even told his Spanish-born wife, Raquel, and she was not, at first, amused. "He brought me here so proudly and it was like some horrid factory with holes in the roof," she says. She took some persuading to come round to the idea that this dark and dingy wreck might be transformed into a home.

The mill cost £115,000 to buy, but that was just the start of a project that took a considerable amount of time and money to complete. "The planning process alone took three years," says Williamson. "And we only finished work down in the basement earlier this year." As co-owner of a building firm, he was able to make substantial savings but, as he admits, he waved goodbye to "hundreds of thousands" before the job was done. Converting a historic building involves delicate negotiations with conservation agencies, and good professional advice is, in Williamson's view, a must.

The result of all these years of labour is a fascinating, five-bedroom home. The character of the mill has been retained. A pair of massive millstones sits in a corner of the open-plan living room, while flywheels and spindles suspended from ceiling-beams resemble works of modern art. In the basement there is more machinery on show: a giant set of cogs and gears, artfully lit and encased behind plate glass.

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"This was an industrial building," says Williamson. "That's its history and I love the way it's been preserved."

Cast in iron, these beautifully crafted workings remained in use until the mill closed in the 1970s. They stand in proud contrast to the light and airy decor of a high-tech modern home. Although the water wheel no longer turns in the river, it remains the property's defining feature. A door from the living room leads onto a deck with views downstream towards Traprain Law.

In the garden more decks are cantilevered out over the water. The four-acre grounds continue farther down the riverbank for several hundred yards. It's a magical environment. "It's rare for the river here to flood," says Williamson. "They knew what they were doing when they decided where to put this mill and it's many metres above water level."

Just in case, however, the lower level of the house is tanked. It pays to be extra cautious with a river as a neighbour. The couple had planned to make Sandy's Mill their home for many years. "It's like our little, private kingdom," says Williamson. "When we're here we never want to leave."

However, despite owning two Rhodesian ridgebacks, the couple need to make economies and don't require such a large home. They have saved Sandy's Mill. Now the time has come to hand it on.

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Although unconverted mills are rare, some do occasionally come onto the market. A few miles to the south of Gifford, Quarryford Mill sits in a densely wooded glen at the foot of the Lammermuir hills. The buildings, which stand either side of a burn, are derelict and, unless a bridge is built across the water, one is almost inaccessible.

The site is stunning, extending to more than three acres, but steep slopes and boggy ground, in addition to the missing bridge, pose challenges that look almost overwhelming. On sunny afternoons, house-dreamers come and stare then shake their heads and turn away. One day somebody will take the plunge and build an extraordinary home here, perhaps even a Scottish take on Frank Lloyd Wright's Fallingwater, but that moment looks unlikely to be soon.

By comparison, Folkerton Mill, on the Douglas Water in south Lanarkshire, looks an easy option. The mill, which dates from the early 19th century, appears to be in fair condition, or at least still has a roof. As with Sandy's Mill, it retains its original waterwheel and workings, although its B-listed status is likely to make conversion far less problematic from a planning point of view.

With a potential 2,000 sq ft of living space on two floors, plus assorted outbuildings and byres, the mill has excellent development potential. What is more, the adjacent Mill House is already a fully habitable home with three bedrooms, living room and kitchen. "A couple of years back, a property like this would have been snapped up overnight," says the selling agent Geoff Lockett, of Retties.

"As it is people come and look but then they go away and do their sums. We've had interest but no firm offers." The problem may lie in the fact that, at the moment, banks are reluctant to give mortgages on properties requiring restoration.

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Or it may be that the dream of a life by the river has now lost some of its appeal. Whatever the reason, it's all a far cry from the time when potential buyers jammed the lane to Sandy's Mill.

Sandy's Mill, £850,000, Mowat Hall Dick, 0131 555 0616; Quarryford Mill, £165,000, Retties, 0131 220 4160; Folkerton Mill, offers over £399,000, Retties ,0141 248 4160