The only way inside the Lair is through a blood-red door in the Lambet's attic. The door leads to a long, shadowy hallway with red walls and red lit candles. The hallway ends to various rooms, one containing a metal rocking horse. A few small steps lead to a raised, chamber-like room that resembles a theatre, with demonic statues and velvet curtains. The room is also lit by candles and two flights of stairs lead to a raised dais to a room, with marionettes and a workshop-like decor inside.
When Dalton is captured by the Demon, he is chained to the floor and was presumably been harmed by the Demon. When Josh finds Dalton, the Demon discovers Josh's presence and attacks the trio. Dalton takes off with Josh and go through the red door in the Further alternative of the Lambet's house. It is unknown to what happened with the Lair.