Lloyds looks set to become the third banking giant to close its Farnham branch – after plans were submitted to convert its historic Grade II-listed Castle Street premises into a restaurant and “boutique” hotel.

The banking giant has had a branch in Farnham for more than a century, and has been located at 75 Castle Street since 1919. But it now looks set to follow NatWest and HSBC in departing the town when its current lease expires next spring.

A planning application has been submitted to Waverley Borough Council by brewing giant Young & Co’s Brewing plc for the change of use of 75 Castle Street from a bank to a mixed-use restaurant, bar and seven-room hotel.

Young’s has also applied for alterations to the building’s elevations and creation of a roof terrace following removal of rooflights, as well as the “installation of plant and machinery” to the rear of the historic building.

The roof terrace would be accessed from the first floor of the building, designed for the use of “48 patrons”, according to the Young’s application.

The 1930s banking hall would be ripped out and replaced with a bar and fixed seating for bar/restaurant use, but the “openness” of the banking hall would be retained. A new lift is also proposed, as well as extending an existing lift. Its basement will be converted to house staff toilets and an office.

Young’s says its plans for the basement and ground floor are “light touch” and will “celebrate the internal character of the building”. And while it proposes more changes to the first floor to incorporate seven “boutique” hotel rooms, it says the existing first floor layout is “plain in terms of detail or features of interest”.

Young’s application adds: “The nature of banking has changed significantly in recent years and the need for such a large space is no longer prevalent. While the building may not be vacant at present, the low demand for a space of this size, or even a physical bank at all, is increasingly diminishing and any resistance on the basis of the loss of a bank would simply be delaying an inevitable loss.”

The application can be viewed and commented on online at www.waverley.gov.uk/planning under reference WA/2022/02935.

A Lloyds Bank spokesperson said: “We haven’t made any announcements about the branch and, if anything were to change, our colleagues, customers and the local community would be the first to know.

“It’s our intention to keep a branch in Farnham and we’re waiting for further information following the landlord’s planning application.”