Built in the 1880s for Mayor of Waratah David Watson, the two-storey Victorian Italianate residence is understood to also have been a doctor's surgery, boarding house and shop in its time.

Now, new owners Beverley Stuart and Yves Papin are writing a fresh chapter.

They have lovingly turned the property, which was a little worse for wear, into their characterful living quarters on the ground floor and bed and breakfast accommodation upstairs.

Beverley and Yves had no plans for such a big project or a new business when looking to downsize from their acreage at North Rothbury.

However, emotion overcame logic at an open house inspection in 2020.

"We decided to buy the house when we were upstairs on the balcony and I looked across the wrought iron panels to see an arched window . . . it just looked so beautiful," Beverley says.

On the plus side, it was handy to family - Beverley and Yves have 11 grandchildren - and had the big yard they wanted for a vegie garden. Also, the pair are no strangers to renovation and hospitality.

Before he established eco-tourism business Imagine Cruises in Port Stephens with Frank Future in 1995, Yves worked as an architect. He completed his studies in France before setting off to see the world and settling in Australia.

Now retired, he has been hands-on at Waratah reconfiguring the first floor from four bedrooms to two charming bedrooms with accompanying bathrooms and balconies. He has also banished concrete, via a crow bar, from the front yard to fix drainage issues and create beautiful cottage gardens.

Beverley worked "front of house" at Pokolbin restaurants for more than 30 years, most recently at Margan. She owns a flower and styling business, and has a flair for creating interesting interiors.

The couple's rustic furniture from the Rothbury farmhouse looks right at home at its new address.

Beverley's decorating style is eclectic, with much to catch the eye, however, it is tied together by themes: ornate mirrors, elegant light fittings, nautical artwork and models, and quality fabrics such as embroidered French sheets used as curtains.

She is an astute buyer from Facebook Marketplace, and among her favourite finds for the house are: three crystal chandeliers from Mayfield; a wall sconce bought by its Newcastle owner at an antique shop in Rome 20 years ago but never mounted; and the patchwork of decorative tiles inlaid in the entranceway, well worth the trip to Sydney.

"We do have a rule that there has to be a place for something before we buy it," Beverley laughs.

Beverley and Yves have just opened bookings for the B&B and hope guests feel nurtured in the unique setting. Beverley makes her own granola and yoghurt, poaches fruit and promises warm croissants.

"I worked for years in the hospitality industry. I love being around people and I love to make people happy," she says.

Yves adds: "We also wanted to create a place where people could feel the history of a Victorian home with today's comforts."

Their efforts have not gone unnoticed. Passers-by are keen to share recollections of the Waratah landmark and its various incarnations, as well as their appreciation.

"When we are out the front having a cup of tea in the morning, people will stop and say how it's nice that the gardens are looking beautiful and the house is looking loved and that they enjoy watching the progress," Beverley says.

"An older lady told us that when she was a little girl there was always a cockatoo on the top verandah that she used to stop and talk to, and we met a lady in the street who lived in one of the rooms upstairs and her [now] husband was living in the room next to her. They now have two little kids."

Yves and Beverley intend to turn their attention next to the ground floor, which has a third bedroom, living room and large dining room. They want to update the kitchen and bathroom and reinstate an original feature by remodelling the sunroom into a dining/family area with internal garden.

Keeping the footprint and character of this period property, with its arches, lacework, pressed metal ceilings, working fireplaces and adornments, is paramount to its current custodians.

"We like things that have been used and loved; that have a story," Yves says.

"You can sense the stories in this house.

"It makes all the energy and money we've put into it worthwhile to be a part of and preserve its history.

"It has a beautiful spirit."

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