@nacras
We're not quite as far away from Lancaster as you (4hrs rather than 5) but still a fairly long journey.
We still decided it was worth it and so far glad we did.
When we looked round over the summer we stayed at the Lancaster House Hotel which is right next to campus and really lovely - but pricy, especially if you need 2 rooms (it's probably cheaper to have a suite if someone can survive on a sofa bed).
Having done a bit more research for drop off we stayed at Bridge Square Apartments in a 2 bedroom flat (via booking.com - a company called YoloLets seem to own 10+ properties there). It's right in the centre and very conveniently near to the big Sainsbury's so we were able to do a massive food shop on Sunday morning to set him up as it were, before moving him in without worrying about food spoiling.
It was cheaper than the hotel and has a secure underground car park (you need a code to get in) so there were no worries about leaving the car full of packing.
We drove there on Saturday and were then "fresh" for the drop off/move in on Sunday before returning home.
It actually worked really well and seems we had less stress than friends trying to drop off at much more local locations in one day.
Also it was lovely to spend a last evening as a family in Lancaster. We had a nice restaurant meal together and then watched a favourite movie in the flat before bedtime.
The flat wasn't anything super special, but it was very clean, functional and had everything required (inc washer/dryer) so we could even wash the clothes DS was wearing to minimise his laundry pile!).
We plan to do (sort of) the same in reverse at the end of term by coming on the Thursday but staying in the lakes so DH and I get a nice mini holiday before picking him up on Saturday - so a combination holiday/pick up!
There's no getting around that the distance adds ££ but there are ways to make it less daunting than it might seem if budget isn't the pressing priority.
Good luck whatever you decide x