At least 23 houses could be built in the centre of St Asaph.
Officers at Denbighshire Council are considering an application to build the homes on a 0.75 hectare site on The Roe, in the centre of the city.
The applicants, Drs Oliver and Robert Prys-Jones want to develop the site of the Bron Haulog mansion.
The 19th century house has been the family home of the applicants but after being on the market for two years it failed to sell.
A report to planning officers said: “The applicants are not house-builders or property developers but owners who, following their inability to sell their former family home on the open market, have elected to seek permission to put the site to better use.
“The applicants seek to present a proposal which will be well received within the neighbourhood in which they were raised; one that is respectful of the interests of the adjoining owners and of the neighbourhood in general, and one that respects the distinctive features and assets of the site; both natural and man-made; and responds positively to its context within the street and neighbourhood.
“It is envisaged that the project will be taken forward by a housebuilder.”
Bod Haulog is a a detached house from the Victorian period which has been in the ownership of the same family since 1936.
It sits on a plot of about 1.86 acres with a wide roadside frontage onto the A525.
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