The 19th century Craven Lodge, in Burton Road, is where King Edward VIII and the American divorcee, Wallis Simpson, are said to have begun a relationship, which forced the abdication crisis of 1936.
Joint agents Mather Jamie and Shouler Son have now sold part of the site – which comprises the lodge’s grounds – to Williams Builders, of Anstey, who are soon to start work on the new houses.
Developers Rochford Homes, of Grantham, have already begun redeveloping another part of the site, which includes the grade II-listed lodge famed for its royal connections.
This part of the site has detailed planning consent for the conversion of Craven Lodge into nine luxury houses with two to five bedrooms.
Director Robert Cole, of Mather Jamie, said: “This sale represents a unique opportunity to build exclusive new homes in a location which not only benefits from being in a vibrant market town but is also steeped in history.”
Edward once described the lodge as his ‘second home’ and from 1924 to 1928 regularly used the private quarters he had built at the property while hunting and socialising in the county.
The lodge was one of several homes in the Melton area frequented by Edward and American divorcée Mrs Simpson.
Many other royal visitors and dignitaries stayed at the lodge over the years.