Owen and Coyle are in the ancestral hall at Paramore, recalling this story and walking by the same room where the two deaths had occurred. Kate still cannot accept Owen's assertions. Sir Philip demands a private meeting with Owen. Coyle notices the similarity between Sir Philip and the old man of the story, and between Owen and the boy. Owen emerges from the meeting with Sir Philip to state that he has been disinherited. Mrs Julian cries at this news, and reveals that she had hoped that Kate and Owen would be married to be able to preserve their social status. Lechmere then steps in to offer himself to Kate. Kate momentarily encourages him, and asks Lechmere if he would even sleep in the "haunted room" for her sake. Lechmere says that he would. Owen makes a motion to light the ladies' candles, but Miss Wingrave deliberately snubs him and turns to Lechmere for this task.