Margaret Thatcher's former home is to go on the market for up to £35 million after wealthy foreign buyers have been attracted by its “blue plaque effect”.

The house in Belgravia, London, will go up for sale after its current owners complete a major refurbishment project which will include two basement floors and a connection to a mews property behind.

Lady Thatcher lived at the property on Chester Square, which was sold for just £4.16m because of its short lease, until the year before her death at the age of 87.

It is expected a figure of around £35m could well be realised as trophy-hunter buyers from the US or Middle East bid against each other to own the home of such a famous figure.