Castle is currently run as a successful country house hotel and retains many of its historic fittings and striking architectural details," says Strutt and Parker.
Also going under the hammer were the 22-bedroomed Otterburn
Hall Annexe, which fetched [pounds sterling]145,000, and the 18-bedroomed Coach House, which went to [pounds sterling]100,000.
The mill, which is believed to date back as far as the 1400s, moved to exploit the widespread availability of local wool during the Industrial Revolution and the Otterburn
name has been synonymous with luxury woven goods ever since.
2 Hopefoot Cottages, Otterburn
, is for sale through Grey Estates at PS184,950, tel: 01434 700077.
The French supply fire support to the Royal Artillery regiments and the intensive training regime at Otterburn
is designed to integrate the different cultures into a single force.
Coach House Hotel has sold after being recently refurbished
It follows the closure of Otterburn
Hall Hotel in August, and leaves the village with only one of its three hotels - Otterburn
Towers - open.
Private Conor McPherson, 24, from the Black Watch, 3rd Battalion, the Royal Regiment of Scotland, died after suffering a serious head wound while taking part in a night live-firing exercise at Otterburn
A spokesperson for the Great North Air Ambulance said: "Our Pride of Cumbria helicopter was called out at about 9.10am to assist the North East Ambulance service at Otterburn
Army Camp where a soldier had become hypothermic whilst on exercise.
Rev Peter Mander of Otterburn
's St John the Evangelist Church said: "There is a strong bond between the village and the camp and when a tragic event of this nature occurs it affects everyone.
Fayre-goers can discuss their wedding breakfast with a chef, choose their music, pick their photographer and see exactly what the Otterburn
Tower offers couples as their wedding venue.
Now the building will reopen as the Otterburn
Coach House Hotel - the first of the developments on the site to rise from the ashes when it opens for business in August.