The Bermudian owners of the $45 million Tucker's Town house 'GoldenEye' were celebrating yesterday after a Government U-turn gave them the green light to market it internationally.

On the second day of the Court of Appeal case involving the luxury home, the Government's lawyer said that despite a policy banning Bermudians selling homes to foreigners the Minister of Labour and Home Affairs would consider this case on its merits.

Alan and Vera Rosa Marshall, the property developers behind GoldenEye, were in court to hear proceedings unfold.

"I'm very happy that the Minister had used his discretion and we are able to go ahead and advertise it and start finding a buyer: It's been a long process both legally and emotionally. I'm sorry its taken all this ? it's what we wanted from the beginning," said Mrs. Marshall afterwards. Her husband added: "We could have avoided all of this if he said he would discuss it but I am happy and grateful now."

Mr. and Mrs. Marshall successfully took the Government to court earlier this year over the February 2005 policy change which stated Bermudians could not sell homes to foreigners. Prior to the change in the rules, homes could be sold on the international market as long as they were above an Annual Rental Value fixed by the Government.

The new policy said this was only the case for non-Bermudian property owners.

Mr. and Mrs. Marshall argued that this scuppered any chance of them selling GoldenEye ? in which they had invested $37 million ? as no Bermudian could afford its staggering price tag. Supreme Court Judge Geoffrey Bell subsequently declared that the policy was unlawful.

The Government took the case before the Court of Appeal on Monday in a bid to get Mr. Justice Bell's ruling overturned and have the policy declared lawful once more. Much of the opening day was taken up with argument about whether Minister of Labour and Home Affairs Randy Horton retained discretion in exceptional circumstances ? despite the policy change ? to consider individual applications from foreign buyers on their own merits. Professor Jeffrey Jowell QC, for the Government,.said the Minister did have discretion but Saul Froomkin, for the Marshalls, questioned why he had not offered to use it in the GoldenEye case.

When the court reconvened for the second day of the hearing yesterday, Prof. Jowell said the Minister of Home Affairs was prepared to consider an application from a future foreign buyer.

President of the Appeal panel Edward Zacca said that although the Minister had undertaken to use his discretion, he would still have to satisfy himself that any purchaser who applies to buy GoldenEye is suitable and "not a rogue". The judges said they could not make a decision at this stage on whether the policy is lawful or not but said the declaration of unlawfulness by Mr. Justice Bell should be "stayed" and the appeal adjourned until November. Judge Charles Mantell indicated that the Appeal Court could be asked at that stage to consider whether the declaration should be "set aside". The matter of costs will also be discussed then.

The impact of events on other Bermudians who may wish to sell their top-of-the-market homes to foreigners remains unclear. Mr. Jowell told the Appeal judges that the declaration that the policy was unlawful related entirely to Mr. and Mrs. Marshall who, he found, had their legitimate expectation to sell GoldenEye breached. He said that while that did not technically set a precedent for other people there are others who would like Mr. Froomkin to establish that they, too, had a legitimate expectation to sell their homes on the international market.

"The Minister is concerned that we don't in any way endorse the notion of a legitimate expectation," he said, explaining that the Government wishes the policy to stay in place. Mr. Froomkin said "anyone can bring a case at any time. The declaration is personal". Speaking afterwards, Premier Alex Scott said that while the Marshalls may seek permission to sell GoldenEye, the policy will still stand in order to protect what he called "real property in Bermuda".