A crumbling listed building in the heart of one of the most famous streets in Cornwall is facing a brighter future after a major intervention.

The former Ganges restaurant in Penzance’s Chapel Street was in a sorry state with holes in the roof allowing water to pour into the Grade ll listed structure.

Cornwall Council issued a warning notice to the building’s owners, but after they failed to take action the authority stepped in.

The top half of the building has now been sold, with council costs of around £17,000 set to be recouped from the sale.

However, Cornwall Councillor for Penzance Central Cornelius Olivier said that an important piece of heritage had also been saved.

“I am very pleased that the council was prepared to engage in the complex and protracted procedures needed to help resolve this situation,” he said.

“Some of the problems of urban decay in Penzance and other towns are due to the irresponsible and short-sighted behaviour of property owners, in such cases council intervention is exactly what’s needed.”

Chapel Street, which leads onto Penzance promenade, is one of the most historic, picturesque roads in Cornwall and is home to the famously gaudy Egyptian House folly, as well as numerous art galleries, high class hotels and the Admiral Benbow pub which has a warren of smugglers tunnels running beneath it.

Cornwall Council’s Empty Homes Team had led the project to save the building and to protect it in the short term while issues around its future repair and use are resolved.

Emergency repairs were carried out earlier this year after an Urgent Works Notice was served and the owners at that time failed to carry out the work.

Nicola Stinson, Cornwall Council’s assistant head of planning and enterprise, said: “There were concerns about the deteriorating condition of the building, principally caused by water coming in through the badly holed roof and penetration through the building.

“The council had to step in when the owners failed to carry out the works.

“Due to legislative constraints and Government guidance, the works were necessarily limited to emergency repairs to protect and preserve the building, and prevent it from getting worse, pending a longer term solution.

“Unfortunately, for the time-being the appearance of the building remains run-down, but as a result of the recent works, it is stable, weatherproof, and secure.”

The council is now continuing its efforts to secure the building’s future and contact has been made with the new owners.

The owners have since said that they plan to carry out further temporary repair works shortly while a detailed scheme for the repair and reuse of the building is prepared. Subject to planning and other controls, it is hoped that work on the scheme will start in 2015.

Edwina Hannaford, Cornwall Council cabinet member for environment, heritage and planning, said: “The council’s actions are tangible evidence of its commitment to Cornwall’s heritage.

“They reflect its determination to protect listed buildings and tackle empty properties.

“Dereliction can have a significant impact on areas and communities and it was important that action was taken in this case to protect the building and begin to realise its potential.

“This is a complex situation, and will take time and continued effort to finally resolve, but a good start has been made and we look forward to assisting the new owners in bringing the property back into use.”