A HISTORIC tower which was once a key part of York's defences is to be turned into a magnificent city centre home for one lucky buyer.

Lendal Tower, a Grade I listed building and scheduled ancient monument, will be transformed into a luxurious two-bedroom property, with its own lift and a top-storey living room with spectacular views of the River Ouse.

Original features such as oak panelling will be retained while additions such as a 1960s bathroom will be replaced with more complimentary designs.

The Helmsley Group has submitted a planning application to City of York Council to convert the 14th century building in Museum Street, which was once the headquarters of York Waterworks, into a residential property.

The Pocklington-based developers bought the site and its three buildings from Yorkshire Water's sister Company Keyland Developments earlier this year for a reputed £1 million.

Ian McAndrew, of the Helmsley Group, said the development would be done in an "extremely sensitive manner", working closely with the council and neighbouring York Museums Trust, to create a "unique and special" home.

"We would expect this property to be marketed nationally and internationally - it is of that quality," said Mr McAndrew, who said that it was too early to give an estimated market price.

"There is so much consultation to go on this," he said. The plans are phase one of a development scheme for the site and planning permission is also being sought to convert Lendal Hill House into a two-bedroom and a three-bedroom property.

The engine house will be developed in phase two, with plans for a commercial use such as offices or a restaurant. The development will also have its own flood defences and the properties will share a courtyard garden.

The planning application is likely to come before the council's planning committee in three to four months and, if approved, the properties could be on the market within six.

Kevin Hollinrake, of Hunters estate agents, said a standard two-bedroom apartment in York will sell for about £150,000, with the more luxurious properties reaching £600,000-£700,000.

Updated: 11:18 Friday, November 19, 2004