The developer behind the transformation of a 17th century Gothic mansion in South Lanarkshire into a luxury hotel has fallen into administration.

Birkwood Estates was redeveloping Birkwood Castle in Lesmahagow into a boutique hotel and residential development of luxury homes.

The development 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 Johnston Carmichael are now seeking buyers to take the site forward.

Administrator Donald McNaught, partner at Johnston Carmichael, said: “This is an historic site which the previous developers knew had enormous potential as a hotel. The local authorities and community are very supportive of attempts to preserve an important feature of the area’s heritage.

“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 reported ghostly activities at the site.