New chapter for 'forgotten treasure' as Sir Walter Scott's mansion wins £2.5m

• Culture minister Fiona Hyslop paid a visit to Abbotsford House yesterday to announce the funding

Abbotsford House, a 19th-century baronial mansion on the banks of the River Tweed, near Melrose, will be restored and transformed into a 21st century tourist attraction under a 10m vision drawn up by a charity set up to save it from falling into disrepair.

It is expected to unlock a further 4.6m from the Heritage Lottery Fund later this month after an initial pledge was made by the UK-wide body last year, when it awarded the trust 144,500 to work up detailed plans for the mansion house's full restoration and a new visitor centre. Scottish Borders Council had already committed 1.5m to the project.

The visitor centre – which will house a shop, caf and reception area – will chart the changing face of the estate, which had only a cottage and a farm steading when Scott – famed for novels such as the Waverley series and Ivanhoe – bought it in 1811.

Work on the centre, to be built in the grounds of the 40-room turreted mansion, is expected to begin by the end of the year following confirmation of the funding package, made up of grants by the Scottish Government, Historic Scotland and Scottish Enterprise.

The project, expected to take several years to complete, is hoped to lead to a huge revival of interest in Abbotsford, which attracts just 26,000 visitors a year at the moment.

Although Sir Walter was born in Edinburgh, Abbotsford was his most prized possession. The mansion, which took the writer some six years to build, is home to a vast collection of literary material, as well as historic relics, weapons and armour.

Abbotsford was opened to the public in 1833, just five months after the writer's death, and was cared for by his direct descendants until the death of his great-great-great granddaughter in 2004.

The Abbotsford Trust, which was formed three years ago and is headed by Lord Sanderson of Bowden, a former Scottish Office tourism minister, is now stepping up fundraising efforts from private trusts and donors.

Lord Sanderson said: "We are absolutely delighted to get to this stage with the level of support we have received and things are certainly looking very good at the moment."

Culture minister Fiona Hyslop said: "Abbotsford's attraction to Scott's admirers draws people from across the globe to the Scottish Borders, which in turn generates the local economy and tourism. Scott's international reach for Scotland is enormous. There are so many reasons to appreciate this incredible home and what it represents to the Borders and Scotland as a whole."

Jim McFarlane, managing director of operations for Scottish Enterprise said: "The funding package that's been put together reflects the importance of Abbotsford both in terms of its historic importance and also its potential to enhance the region's tourism offering and develop the wider economy."