Developers are set to submit plans to demolish Netherlea Hospital in Newport, Fife, to make way for a collection of luxury homes costing up to £650,000 each.

Netherlea, red sandstone mansion built in the late 19th century, closed in 2011.

It would be demolished to make way for the new development of between 35 and 45 properties, which would be up to four storeys high.

Boasting views across the Tay and a few minutes’ drive from Dundee, a two bedroom flat at the site could cost around £275,000.

Law Property Group, who are acting as agents for the developers, said it was a prime development for local residents looking to downsize.

David Hagan from Law Property Group said: “We’ve talked to the planners and there’s not a great appetite for keeping the hospital.

“It wasn’t a great building in the first place and it’s not in a great condition. It’s not an attractive building.”

He said a planning application could be submitted by the end of April.

“These homes are going to have fantastic views across the Tay, to the Law, Sidlaws and the new V&A.

“The development and landscape design will be world class.”

The plans are currently on display at Newport Library.

“The reason for having the display at Newport Library is so our ideas can be informed by feedback,” he added.

“We’ve already had some positive feedback but there are a couple of things people have said they didn’t like.”