Founded in 1550 by Pedro Fernandes, scribe of the household of Catherine of Habsburg, Queen of Portugal, the Convent of Our Lady of Mount Carmel was built in an isolated parcel 1 kilometre (0.62 mi) east-southeast of Lagoa.

[2] For many years it was the home of the several male Carmelites of the Ancient Observance, of the Order of the Brothers of Our Lady of Mount Carmel (Portuguese: Ordem dos Irmãos de Nossa Senhora do Monte Carmelo).

When the monasteries and religious institutions were closed and/or extinguished by alternating liberal politicians, the Carmelites abandoned this site, which then passed into private hands.

[3] On 8 October 1825, the site was abandoned completely by the monks, leading to its ruins as early as 1834, passing into the hands of private property-owners.

In 1867, based on ordinances issued on 26 November 1863 and 24 August 1864 concerning the possessions of extinguished religious orders throughout the Kingdom, the Ministry of Finances (Portuguese: Ministério da Fazenda) transferred the responsibility for books and documents of the convent from the General-Directorate of National Properties (Portuguese: Direcção-Geral dos Próprios Nacionais) to the National Archive of Torre do Tombo in Lisbon.