DRAFT plans to turn crumbling Elvaston Castle into a hotel and golf course have been criticised by the custodian of England's historic buildings.

English Heritage says the proposals from developer Highgate Sanctuary would have been "damaging to the setting of these designated heritage assets".

A spokeswoman said that this did not mean a planning application could not be submitted for it to become a hotel and golf course.

But the views of English Heritage – which have to be taken into account when deciding planning applications for historic properties – appear to throw yet more doubt on the building's future.

This is despite the castle's owner, Derbyshire County Council, having decided it could not afford its upkeep more than a decade ago.

Highgate Sanctuary was selected as the authority's preferred bidder for the site in September 2004. It would take over the castle and fund the cost of repairs.

It has only now been revealed that details of Highgate's proposed scheme were sent to English Heritage for consultation prior to a planning application being made.

An English Heritage spokeswoman said the Highgate scheme to transform the castle was not acceptable on two grounds – the scale of the plans and "associated infrastructure".

The second point referred to two new roads that would have been built in the castle grounds.

Anthony Streeten, English Heritage planning director for the East Midlands, said: "We did not regard the scheme presented by Highgate Sanctuary as suitable for the sensitive historic location."

The spokeswoman said English Heritage was a consultee and that its views could be ignored by planning authority South Derbyshire District Council when a final application is made.

Dr Tanya Spilsbury, High-gate's managing director, said: "We wouldn't want to put a planning application in that did not address issues raised by major consultees."

English Heritage's comments come at the same time as a report showing that the castle and its country park needs repairs costing more than £6.4m.

This document will be used to inform a further report about what the castle could be used for.

County council finance chief John Harrison said both reports were asked for by English Heritage.

The county council has always maintained public access will continue to the country park and Mr Harrison said the way this would work is now also in question.

The council's original plan had been to lease the castle and gardens to Highgate Sanctuary and for the developer to lease the gardens back to the authority.

But Mr Harrison said there could now be two separate leases – one for the castle, and one for another organisation to run and maintain the country park as a public attraction.

He said whoever took over running the castle would spend "millions" on repairs but that exactly how much remained open for debate.

Mr Harrison said he would be "surprised" if the council was not successful in applying for Heritage Lottery funding for the rest of the repairs.

But the report is clear that some work, for example to the castle's leaking roof, are "urgently needed".

While the fate of the castle hinges on the second report on potential uses, expected later this year, Highgate says its enthusiasm for the plans has not changed.

Dr Spilsbury said she still hoped a planning application could be made at the beginning of next year.

She said Highgate had offered a combined package of £2.75m, including a premium lease for the estate, a match funding element for the grant application to the Heritage Lottery, and cash for works to drainage, gardens and driveways.

QWhy should I care about Elvaston Castle and Country Park?

A The castle as we know it today was built during the mid-19th century. It is grade-II*-listed, which means it is considered "particularly significant" and "of more than local interest" by English Heritage. The castle is only occasionally open to the public but the country park attracts thousands of visitors a year.

QWhy doesn't Derbyshire County Council want to keep it?

AIt says it can't afford it. Passing it on is intended to save the taxpayer an estimated £3 million in repairs and £500,000 running costs a year.

QSo to whom does it want to pass it on?

ADeveloper Highgate Sanctuary has been its preferred bidder since September 2004. The firm wants to turn it into a hotel with an adjoining golf course.

QSeptember 2004 seems a long time ago, doesn't it?

AYes. And it wasn't even the first preferred bidder. Seasons Holidays plc was the original choice back in January 2001 but the company was dropped after it failed to supply information to support its plans. The county council decided it could no longer afford the upkeep of the building more than a decade ago.

QThere seems to be some progress now though?

AIn a sense, although exactly what will happen is far from certain. A report has been drawn up showing that repairs valued at £6,425,515 are needed to the castle and country park. It says that the castle is "on the cusp of serious deterioration" and the roof is "actively leaking in numerous places".

QWhy does that bring us closer to knowing what will happen?

AThe document will be used to inform another report that will look into what the castle could be used for. This is set to look at the castle and golf course option as well as other ideas.

QWhere did the repairs report come from?

AIts introduction says it was "commissioned by the county council", grant-aided by English Heritage with input from both organisations and also the planning authority which makes the final decision, South Derbyshire District Council.

QThe report must have taken a long time?

AThe assessment of the castle and grounds took place mainly in the latter half of 2009. A county council spokesman said it took so long "because it needed to be as accurate and thorough as possible".

QWhile all this has been happening, hasn't the county council been continuing to pay upkeep costs?

AYes. By May this year the authority had spent more than £5 million on running the castle and country park since Highgate was selected as preferred bidder. But the council says this just goes to show how much it could save if it wasn't responsible for the attraction any more.

QIf Highgate did get planning permission, would the public still be able to use the country park?

AThe council has always maintained this would happen, though how this would work has not yet been finalised. The grounds could be leased to another company to run and maintain but the council would retain ownership.

QDoes anyone reckon Highgate's plans aren't a good idea?

AYes. The Friends of Elvaston Castle was set up to battle the proposals. Its members believe the castle should be a tourist attraction again. They believe the £5 million upkeep costs should have been spent on achieving this.

QWhat do the Friends make of the current situation?

ANot a lot. The group wants more detail on recent hold-ups and says the suggestion that proposals to split the lease between the operators of the castle and a firm running the gardens "goes against previous recommendations for the site's sustainable future". It cites Nottingham City Council's successful bid for £9 million in grants to restore Wollaton Hall and Park as an example of what could be achieved at Elvaston.

QWho will pay for the repairs bill?

AThe county council says the successful bidder for the castle will be required to spend millions and that bids for Heritage Lottery Fund money would be made for the remaining cash. The report itself is more vague. It says: "At this stage, no examination of how each of these essential or necessary works will be funded has been attempted."

QWhen can we expect a planning application to be made?

AHighgate is still hopeful it will be made early next year.