NHS chiefs have drafted in lawyers to challenge a decision to list Minehead's old hospital as an 'asset of community value' in an attempt to sell the grade II listed building on the open market sooner rather than later.

NHS Somerset said it was acting in the interests of taxpayers to try to secure the best possible price for the redundant building, something that could be hampered by the community asset listing.

Minehead Development Trust (MDT) successfully applied for the hospital to be listed at the end of last year using new Government legislation designed to prevent key properties and businesses being turned into housing developments.

MDT wants to buy the building for use as a community hub, which could include space for a library, museum, visitor information centre and meeting rooms.

Shops, restaurants and a café could also be included within the site, while the meeting rooms could be used to host exhibitions, concerts and performances.

Under the terms laid out in the Localism Act, a listed asset cannot be sold on the open market unless the community is given the chance to buy it first - or, in the case of a business, the premises must be sold as a going concern.

Members of MDT, the charity which was set up to try and buy the hospital and convert it into a community facility, said a vital regeneration opportunity would be lost forever if the hospital was not protected and was sold on the open market to a developer.

As long as the hospital building is listed, the trust or any other community group has six months to try and buy the building before it is put on the open market once the NHS decides to sell up.

A spokesman for West Somerset Council confirmed the NHS had lodged its intention to sell the building, effectively triggering the six months community deadline process.

However, as part of the notification, the NHS had also sought a review of the council's decision to adopt the building as a community asset.

The review is likely to be conducted by a panel of councillors who will be chosen at next month's scrutiny committee meeting.

Although NHS Somerset has not officially put an asking price on the hospital building, it is widely believed to want at least £1 million for the site.

But the situation could be further complicated in April when a new national property company takes over responsibility for all redundant NHS property with the remit to maximise profits from building sales.

MDT chairman Jenny Lennon-Wood said meetings were continuing between the development trust and the NHS to try and find a way forward.

However, she said it was difficult to plot an exact course of action as the development trust still did not know how much money the NHS wanted for the site.

"We will begin fundraising big time once we know what we are aiming for but we can't ask for money until we know.

"Similarly, we can't apply for grant funding without a business plan and we can't do a business plan until we know what the goal is.

"But we will be trying to get the money together to put in a convincing bid.

"This building is key to the town's regeneration and it would be ghastly if it was lost," Ms Lennon-Wood said.

A spokesman for NHS Somerset confirmed further talks would be held with MDT next week.

"Managers with NHS Somerset are still proposing to meet with members of the community with a view to offering any co-operation with a business case which they might be preparing in support of their goal of acquiring the old building," he said.

But he also confirmed the NHS was hoping to overturn the hospital's listing as an asset of community value which currently prevented it being sold on the open market for six months.

"It is customary that when an NHS property becomes surplus to requirements the service is obliged to market and sell the property applying normal commercial considerations and with the aim of securing a maximum price.

"This might appear at odds with a wider community interest but money derived from the sale of such property will return to the local NHS for investment in local services and health facilities.

"NHS Somerset cannot disregard its responsibility to secure the best return for both the local health service and the taxpayer," he said.