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It was originally purchased in 1961 from Formby's estate by Bill Logan, the first president of the George Formby Society.
George Harrison tried to buy the banjolele from Mr Wallin in the early 90s, but he would not part with it.
Decades later, Mr Wallin's family, from Sutton Coldfield, came across it during a clear out and decided to let it go.
Mr Wallin's son Terry, said: "He told me about George Harrison wanting to buy it but dad also bought an inscribed silver salver with the banjolele which was given to George Formby and his wife Beryl by theatre impresario Tom Arnold.
Mr Wallin's son Terry, said: "He told me about George Harrison wanting to buy it but dad also bought an inscribed silver salver with the banjolele which was given to George Formby and his wife Beryl by theatre impresario Tom Arnold.
"George Harrison didn't want the silver
salver, just the banjo ukulele, but dad wanted to keep everything
together. That's why he wouldn't part with it."
There are only
three of the Gibson banjo ukuleles which Formby used, and one was sold
for £72,000 at auction to Queen's Brian May in 2008.
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