The Old Mill House Hotel in Baginton is home to a phantom known as the Grey Lady. This ghostly presence is said to be more likely heard than seen, with reports of her voice being detected in the restaurant. According to local legend, the Grey Lady is the spirit of a woman who was brutally murdered by her husband and now remains on this mortal plane, searching for her child. The atmosphere at the hotel can be quite unsettling, especially in the evenings when the sound of whispers and footsteps seem to echo through the corridors.

Historical records suggest that the site of the Old Mill House Hotel has a dark past. One story claims that a man was murdered on the premises over a debt, and his ghost would occasionally manifest on the staircase. Another account tells the tale of the Grey Lady, a woman who met a tragic end at the hands of her husband. While the exact details of her story are unclear, it's said that her spirit has been trapped between worlds, searching for her child. Witnesses have reported strange occurrences, including unexplained noises and movements, which have led many to believe that the hotel is indeed haunted.