Villagers fear a run-down country mansion could collapse unless restoration work is carried out soon.
Scraptoft Hall, which dates from the 18th century, has been ravaged by vandals and metal thieves since it closed.
Despite security patrols and fencing, the listed building was targeted by thieves again last week.
A promised redevelopment of the site was due to start a year ago – but the recession put a stop to funding. Villagers fear the delays could prove costly.
Scraptoft Parish Council chairman Peter Elliott said: "We are very worried about its future. It is just a shell. It is rotten from top to bottom. I don't know what is holding it up."
Developers won permission a year ago to restore the building as part of a multi-million pound retirement village project.
But Scraptoft Retirement Village Ltd has not been able to secure funding. The retirement village would have contained 103 apartments as well as accommodation blocks built in the grounds.
As part of the project, the hall would have been restored to its former glory.
It is understood the developers have approached Harborough District Council planners with an alternative scheme that may attract bank backing.
District councillor Simon Galton is keen to see the building restored.
He said: "The longer Scraptoft Hall is left open to the elements, the worse it gets.
"I understand the developers have sought to prepare an alternative scheme which would see buildings erected on the south lawn that would create funding for the restoration.
"But plans have yet to be submitted to the council."
Councillor Ruth Faulkes has responsibility for heritage for Scraptoft Parish Council.
She said: "Last week thieves used bolt cutters to cut through the gates to steal yet more metal from the building.
"It is very distressing to see the hall deteriorate even further. It is not protected against the weather and I did not believe there was anything left worth stealing."
The hall is on English Heritage's Buildings at Risk register.
Anthony Streeten, English Heritage's East Midlands planning director, said: "We know that it has suffered from neglect and vandalism over many years. It is very disappointing the building is the victim of more vandalism.
"We await commencement of the development."
Scraptoft Retirement Village Ltd bought the building and the grounds in 2008 for �2.8 million.
Last year, Adrian Kerrison, a director of the company, said last year that funding was difficult to obtain because of the recession. He predicted at the time that work would be able to start this year.
No-one was available at the Nottinghamshire offices of the company despite repeated attempts by the Leicester Mercury to contact them.
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