An eccentric hotelier has admitted threatening to set fire to a neighbour’s house in a bizarre argument about a pet lizard.

Former barrister Shirley Bothroyd, aged 59, was running the Bay Hotel in Teignmouth in August last year when she made the threats to a woman who was looking after the lizard.

The neighbour had taken the pet to her home opposite the hotel in South View, because she did not think Bothroyd was looking after it properly.

Bothroyd confronted her and threatened to burn her house down. A small fire was lit in the letter box the next morning but went out and did not cause any damage.

Bothroyd admitted threatening to cause criminal damage when she appeared at Exeter Crown Court. A more serious charge of arson was dropped.

Judge David Evans adjourned the case for four weeks for a psychiatric report and remanded Bothroyd to the Fromeside Hospital, where she has been treated since being moved from prison under the Mental Health Act.

Mr Nicolas Gerasimidis, defending, said Bothroyd has been diagnosed with depression and may benefit from receiving a Hospital Order rather than another form of punishment.

He said her mental illness is linked to the situation in which she finds herself and previous abuse of alcohol, but she has been sober for several months since being remanded in custody last year.

He said she plans to move to London when she is released.

Mr William Hunter, prosecuting, said the Crown were offering no evidence on the arson charge.

An earlier hearing was told that the case against Bothroyd was based on the threats she had made and a cigarette butt with her DNA found in the street.

Bothroyd is a qualified barrister who worked in a legal department for many years before moving to Devon and buying the Bay Hotel.

Her arrest for arson followed a series of incidents with guests which led her to being dubbed a female Basil Fawlty.