WORK has started on redeveloping an historic building in the centre of a north Lancashire village as housing and a restaurant.

The Castle Hotel in Hornby has been disused for several years.

But Lake District developers Applethwaite Ltd have started a £2.5m project to convert it into seven cottages and apartments – plus a restaurant with rooms.

They hope the work, carried out by sister company Robert Hughes Ltd, will be complete early next summer.

Both firms are based at Bowness-on-Windermere and are part of the Eric Wright Group.

As part of the submission for planning consent, granted by Lancaster City Council, Greenlane Archaeology of Ulverston, was commissioned to carry out an historical survey of the buildings.

A report said The Castle Hotel remained an important element of the historic fabric of Hornby, occupying a site of considerable prestige from at least the end of the medieval period.

The architect for the new scheme is Tony Hills, of Levens-based Damson Design. He said the buildings had been neglected for some time, with unsympathetic extensions and alterations from the Victorian period onwards.

Refurbishment would restore the period appearance of the group of buildings to enhance the village and would make use of as many of the original materials as possible.

Internally, original features such as wooden floorboards, covings and exposed timbers would be retained where practical.

“Some of the detail has yet to be decided because, until we get in there, we don’t know exactly what we will find,” said Mr Hills, who will be consulting city council conservation officer, Stephen Gardner, at all stages.

The new homes will be a mix of cottages and apartments, some with en-suite facilities.

It is intended the development will be named Lingard Court, after 19th century historian and priest John Lingard, who spent his last 40 years in Hornby.

The restaurant, with rooms above and in a converted barn, will retain the name Castle Hotel. It will be run by Jayne and Chris Ledsham, of Kirkby Lonsdale.