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This historic home in Saugerties, New York, once owned by the late puppeteer John Henson, son of Muppets creator Jim Henson, is on the market for $4.99 million.

That’s a steep drop from its 2015 asking price of $12 million. Henson bought the property for $4.2 million in 2004.

The seller is John’s widow, actress/producer Gyongyi Henson. Known as Bright Bank, the home, at 33 Barclay St, overlooks the Hudson River.

It was built in 1855 — once part of a 1,000-acre farm — and sits on 80 riverfront acres. It also comes with rights to restore a deep-water dock.  

The eight-bedroom, six-bath home is 7,275 square feet.

A restoration of the home has begun but has not been completed. That includes demolishing the interior while preserving the original architectural details — from the doors to fireplaces, moldings, window carvings, radiators, staircase, interior shutters, exposed brick and parquet floors. There’s also a new “state-of-the-art” infrastructure with updated water and gas lines, and a new septic system.

On the third floor, twin Juliette balconies were added while the basement level was also updated with poured concrete and radiant heat — and the basement once reportedly had access to an Underground Railroad tunnel.

There’s also an original fountain between the main home and a two-bedroom caretaker’s home with a fireplace, built in 1948 — and plenty of room for a pool, tennis courts and vegetable gardens.

There’s also an updated horse barn and an artist’s studio created from a former icehouse that features a kitchenette, powder room and spruce-board floors made from a tree found on the property.

In addition, the property features multiple storage sheds and an original stone staircase. The gated property also boasts a greenhouse with radiant floors and a new gas furnace.

The listing broker is “Million Dollar Listing New York” star Steve Gold and Richard Vizzini of Corcoran Country Living.