Another case of where homes in a former hospital have been snapped up by buyers despite tales of haunting is St John’s at Bracebridge Heath, near Lincoln.

Here a £40million redevelopment is transforming the Victorian infirmary, vacant for years after the NHS abandoned it, into apartments and new-build homes.

The regeneration will create 64 houses and 42 apartments in the limestone-faced Grade II listed Italianate building by architects Hamilton and Thomas Percy, which closed as a hospital in 1990.

Within the building there are still many reminders of earlier times, including a Victorian theatre, which later served as a cinema. The site, along with 18 acres of grounds, had been deserted for nearly a quarter of a century when a group of amateur ghostbusters from Hampshire visited in 2010 and recorded strange noises and other phenomena.

However, the fantastic spaces within the old stone buildings, including heritage ironwork and other features, were more than enough to convince most people the beautiful old place should be saved.

Developer Mabec, which specialises in the regeneration of older buildings in the East Midlands, acquired the site in 2012 and the project is being marketed by local estate agent Pygott and Crone (pygott-crone.com/01522 561 455). Senior partner Tim Downing said it would bring new life into the area.

The first phase of the development, including 10 luxury apartments and seven new-build, four-bedroom detached houses, is nearing completion and there have been high levels of interest in the project.

Prices for the remaining newbuilds in this phase range from £265,000 to £300,000 for a fourbedroom detached house with two bathrooms and garaging.

Townhouses will be released in early 2015 and prices are expected to start at £250,000.