The derelict Queen Elizabeth Hospital in Surrey, designed by Victorian master Richard Norman Shaw, is to be saved from the scrapheap.
PRC Architects and developer Try Homes have been given the go-ahead to convert the abandoned Grade II-listed buildings into 107 homes.
Built between 1884 and 1890, the main house was designed for Francis Baring - a member of the famous Baring banking family.
In the 1930s the buildings and grounds were given over to a children's hospital and new nurses' accommodation and wards, designed by Harry Goodhart-Rendel, were added shortly after.
Since closing, the former hospital - which is on Reigate and Banstead council's 'at risk' list - has been heavily vandalised and has also been ravaged by fire.
The £30 million development will restore and convert the old house into luxury apartments and there are plans to build 21 flats in a new extension block.
Emergency repairs are already underway on all the buildings and it is expected the first homes will be put on sale early next year. by Richard Waite