Guy's Cliffe has been around since Saxon times and derives its name from the legendary Guy of Warwick. Guy is supposed to have retired to a hermitage on this site, this legend led to the founding of a chantry. The chantry was established in 1423 as the Chapel of St Mary Magdelene and the rock-carved stables and storehouses still remain. After the Dissolution of the Monasteries by Henry VIII the site passed into private hands.
The current, ruined house dates from 1751 and was started by Samuel Greatheed, a West India slave-owner, merchant and Member of Parliament for Coventry 1747-1761. His son Bertie Greatheed inherited the estate after the death of his mother in 1774, he further improved the house and grounds in 1810, to heighten the picturesque qualities of the site.
The house was used as a hospital during World War I and in World War II became a school for evacuated children.
Guy's Cliffe estate was broken up and sold in 1947. In 1952 the mill became a pub and restaurant and was named The Saxon Mill, the stables became a riding school, the kitchen garden became a nursery, all of which still exist today. A toll house also stood by the road to the north of the Saxon Mill, but this was demolished in the mid 20th century.
The new owner of the house intended to convert it into a hotel, but these plans came to nothing and the house fell into disrepair. In 1955, the house was purchased by Aldwyn Porter and the chapel leased to the Freemasons, establishing a connection with the Masons that remains today. The roof had fallen in by 1966. In 1992, during the filming of The Adventures of Sherlock Holmes (The Last Vampyre) a fire scene got out of control and seriously damaged the building, leading to an insurance claim. English Heritage has given the building grade II listed status.