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There are four Marauders attacking the castle, one Warlord, one Battlemage, one Archer, and one Fighter. Two friendly Battlehorn Men-At-Arms are defending against them inside the castle, with Lord Kelvyn lying dead on the ground in the courtyard. Kill off the Marauders and then speak to one of the surviving Men-At-Arms.
Then go and speak to Nilphas Omellian at The Merchants Inn in the Market District to purchase upgrades for the castle. Once the Hero has bought at least one upgrade, he will send a note to one of the Men-At-Arms at the castle offering to sell them a Dwemer Forge for 3000 gold (the base cost is actually 2510, the same as the other upgrades, however). Once they have bought all of the upgrades, including the Forge, the quest is complete.
Visit the Fighter's Stronghold for a complete list of the upgrades.
I've heard a rumor that the defenders of Battlehorn Castle are besieged by marauders and are appealing for aid. Apparently their commander has been killed, and they're offering the castle itself to anyone who will help lift the siege.
The marauders who were attacking Battlehorn Castle have been defeated, and the grateful survivors have granted me the deed to the castle. I've learned that I can purchase everything I need to restore Battlehorn Castle to its former glory from Nilphas Omellian at the Merchants Inn in the Market District of the Imperial City.
I received a note from Nilphas Omellian, offering to install an ancient Dwemer Forge in Battlehorn Castle for 3000 gold.
I've now purchased everything Nilphas Omellian had available for Battlehorn Castle.
More to do in the castleEdit
Though the quest is registered as complete, there are still other things to do in the castle. They can speak to Melisi Daren the Taxidermist to get stuffed beasts on the pedestals in the great hall.
They can also locate and clear the grotto underneath the castle, which is described in Lord Jaren's Journal. Lord Jaren's Journal is found in a secret hiding spot next to a bookshelf in the Private Quarters. To find it, go to the Library area with the table in the center and two wooden benches. On the left side upon entering, one will see an arch sunk into the wall. Go to the pillar on the right of the arch and activate it. The Journal is in this room, along with a trap door leading to the roof.
When the Hero goes to the Grotto they will encounter two unique undead enemies- a unique lich and a unique skeleton. The skeleton carries the Dragonsword as well as a magical Heavy Shield with the constant effect of Light on it. Wielding the sword will also grant them the use of a leveled fire spell entitled 'Dragon breath'. The Grotto also has 3 Varla Stones scattered about and a chest submerged underwater.