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An old bakery has been transformed into a charming country retreat in an award-winning restoration that perfectly balances historic architecture with modern comfort.

Located in Learmonth, a picturesque town in central Victoria just northeast of Ballarat, the bakery and an adjoining blacksmith - both built between 1860 and 1885 - are now a character-filled three-bedroom family home.

Standout features of the conversion include soaring cathedral ceilings, sweeping lake views and a luxurious bathtub beside a preserved redbrick fireplace, along with a designer kitchen and a verandah that wraps around the back of the house. 

The conversion, which was recognised with the City of Ballarat's 2014 Award for 'Best Adaptive Reuse of a Heritage Place', is fronted with a corrugated iron façade and boasts original features such as timber panelling and the old bakery sign which still hangs over the front door.

© Provided by Daily MailThis old-fashioned bakery has been transformed into a charming country retreat in an award-winning restoration that perfectly balances historic architecture with modern comfort

Skylights flood the living spaces with sunlight, while additions like window seats and silver tapware provide a contemporary contrast to heritage fixtures.

A bright hallway with built-in bookcases and a vaulted atrium leads into the kitchen which is kitted out with timber floors, premium stainless steel appliances, soft-close drawers, an island bench and a walk-in butler's pantry.

The house has three spacious bedrooms, with the master opening onto the verandah through double French doors.

The second has a statement wall of original timber panelling in a nod to the building's past life, while the third could be used as a home office or an artist's studio. 

The kitchen (pictured) is kitted out with timber floors, premium stainless steel appliances, soft-close drawers, an island bench and a walk-in butler's pantry

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Manicured gardens inspired by renowned Australian landscaper Paul Bangay surround the house, which is set on a plot of 2,134 square metres - more than half an acre - overlooked by rolling hills.

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Two reverse air conditioning units, double glazed windows and a five kilowatt solar system keep the house cool in the summer and cosy throughout the winter.

Listing agent Phil Hayward, who is overseeing the sale of the property for real estate agency Jellis Craig, describes it as a 'unique opportunity to live in your very own piece of rural history'.

Skylights and bay windows flood the house with natural sunlight

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'It's quite a historic town so there are a few old miners' cottages in the area, but this is really the only house of its kind,' Mr Hayward told Daily Mail Australia.

He said the restoration was painstakingly completed between 2010 and 2013 by the current vendor, who bought the site when it was little more than a plot of land with ruins of the old buildings. 

Mr Hayward has set the asking price between $740,000 and $770,000, roughly $100,000 higher than the average for the region, but he is confident the market is strong enough to fetch even more.