A CASTLE which was being developed into a luxury hotel is up for sale after the company behind the project went into administration.

Johnston Carmichael has been appointed as administrator for Birkwood Estates, which was developing a 17th-century Gothic mansion into a luxury hotel. Birkwood Castle, in Lesmahagow, Lanarkshire, is now for sale with planning permission, as well as adjacent land consented for residential development.

The hotel was scheduled to open in spring 2019, and the administrators are now seeking buyers to take the site forward.

Administrator Donald McNaught, partner at Johnston Carmichael, said: “We’re hopeful of being able to find a buyer who recognises the opportunity presented by the site, so the future of this local landmark can be secured.”

The castle, a former psychiatric hospital, is reputed to be one of the most haunted places in the UK, with local paranormal experts taking a keen interest in the site.