Y Dolydd is one of the last good examples of a Victorian workhouse

Plans were hanging in the balance last year when the trust behind the scheme had to repay �340,000 used to buy the property in Llanfyllin, Powys in 2005.

But the Ecology Building Society has now offered a loan to refinance the Grade II-listed building.

In 2004 the workhouse, built in 1838, featured in the BBC Restoration series.

Following the series, the Architectural Heritage Fund (AHF) agreed to loan Y Dolydd Building Preservation Trust the money to buy the workhouse.

The workhouse could have been sold for housing had the loan not been repaid at the end of last year.

Endangered buildings

Julia Phillips of Llanfyllin Workhouse, a group which joined forces with the trust to save the building, said: "In recent months much progress has been made and the future for Llanfyllin workhouse now looks very exciting.

"After months of hard work the Ecology Building Society has offered to loan the trust the necessary funds to refinance the building."

Jon Lee, lending development officer for the Ecology Building Society, said they were delighted to help the trust "in realising their vision".

Last October, the workhouse was named one of the top 10 most endangered buildings in England and Wales by the Victorian Society.

Director Ian Dungavell said the society had been concerned about the building's future, but described the latest development as "wonderful news".