Otterburn Hall Hotel in Northumberland sells at auction for £265,000, sparking redevelopment hopes

A former Northumberland country hotel is set to be redeveloped after going under the hammer for £265,000.

But it may take some time before its new owners get it shipshape – Otterburn Hall Hotel has lain empty for more than a decade and the building is now a dilapidated shell of its former state. The Grade II listed building – which has 25 bedrooms and 16 acres of woodland, lawns and even a private fishing lake in the Northumberland National Park – was originally built in 1870 for Lord James Douglas, on land gifted to compensate for the death of his ancestor, Lord Douglas, who fought at the Battle of Otterburn.

The building was later used as a military hospital during the Second World War before being bought by the YMCA in 1980 who converted it into a hotel. As a luxury four-star hotel, the building was described as “one of the North East’s most opulent venues” and was a popular wedding venue, but since closing in 2012 it has lain empty and fallen victim to the ravages of time.

Photographs issued by Auction Estates Ltd ahead of this week’s auction show how the new buyer will need potentially deep pockets for a major restoration project to bring it back to its former glory. Images show smashed and boarded up windows, pools of water gathered on stripped, bare floors, and graffiti sprayed on walls.

In one picture a broken grand piano leans on three legs, while others show a broken toilet, broken doors, and clothing strewn across a floor. The hall was put up for auction at Nottingham Racecourse on Thursday, where a tense bidding war drew bids in the room as well as online and on the phone.

From a starting guide price of £150,000 it was eventually sold to a bidder in the room for £265,000 – £34,000 less than the average cost of a UK semi-detached house, according to Government figures. The sale revives hopes that the grand building could reopen as a hotel, following a number of failed attempts to sell the building.

Documents show how the seller, London based Elmdon Real Estate Collections Ltd, paid £200,000 for the building back in 2016. In 2019, the property was put up for auction with a guide price of £550,000, but was withdrawn before the auction. It was again put up for auction at a guide price of £235,000 in 2022 but received no bids.

Ahead of the sale, Auction Estates described the Neo-Elizabethan style county house as an “ideal opportunity for a developer or investor. Its marketing materials said: “Suitable for a variety of uses, the hall is situated one mile from the historic village of Otterburn. Local shops and amenities are available nearby and the Hall is part of Northumberland National Park. The hall is in need of a full refurbishment. The property has undergone asbestos removal treatment and is ideal opportunity for developer/investor.”

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