A controversial development at Leslie House in Glenrothes will get underway this autumn after being approved on appeal.
Muir Homes appealed to the Scottish Government after Fife councillors threw out their proposal for 28 homes in the grounds of the ruined mansion, which dates back to 1667.
Subject to legal agreements, work will start on site by the end of the year.
Under conditions added by a Scottish Government reporter, Muir Homes will not be able to sell the last five properties until work to restore Leslie House has been completed.
The company could still appeal this condition.
And questions have been raised about how the restoration would be funded.
Following a previous planning permission, Muir Homes granted a sum of money to owners Sundial Properties.
Local resident Mary Patrick, who objected to the plans, said: “Sundial spent that on a restoration and tragically there was a fire in 2009.
“There will be no more funding from Muir Homes.”
Local campaigner Richard Graves fears for the future of the A-listed structure, which is the largest and earliest Restoration house in Fife.
Mr Graves claimed the reporter’s decision had “consigned it to ruin” but had hopes the planning condition in relation to the final five properties “is enough to put the developer off”.
The previous planning consent was for 12 luxury homes.
Now permission has been granted for a larger development of “mid-market” housing.
Muir Homes director David Scobbie said: “We paid a significant sum, once we secured consent for the original 12 units, to Sundial to renovate the house.
“The fire was unfortunate and I’m not sure what Sundial proposes to do with the house itself.”
Mr Scobbie said properties would range from one bedroom flats to four bedroom houses, with a price range of between £100,000 and £280,000.
They would be around 100 metres from Leslie House, with a belt of trees in between.
Leslie Community Council objected to the proposal, raising concerns about the number of houses and increased traffic.
Community council chair Jan Wincott said: “I’m concerned that the reporter upheld the appeal to allow these 28 houses.
“It’s such a lovely forest, and it’s crazy that the original application went through because there were so many objections to it.”
The community council had called for the condition relating to the Leslie House renovation to be added.
“It would be one silver lining, if we saw Leslie House restored,” added Mrs Wincott.
