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The house was quickly found to be too small, and John and William Smith were commissioned in 1848 to design new offices, cottages and other ancillary buildings.
Improvements to the woodlands, gardens and estate buildings were also being made, assisted by the landscape gardener James Beattie and the painter James Giles.
After seeing a corrugated iron cottage at the Great Exhibition of 1851, Prince Albert ordered a pre-fabricated iron building for Balmoral from E. T. Bellhouse & Co., to serve as a temporary ballroom and dining room.
It was in use by 1 October 1851, and served as a ballroom until completion of the new ballroom in 1856.
Major additions to the old house were considered in 1849, but by then negotiations were underway to purchase the estate from the trustees of the deceased Earl Fife.
The sale was completed in November 1851, the price being £ 32, 000, and Prince Albert formally took possession the following autumn.
The neighbouring estate of Birkhall was bought at the same time, and the lease on Abergeldie secured.

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