It is a wonderful place to stay. The view is fantastic, and it feels like a little home away from home. You will need some form of transport though - we rented a scooter which Lorella helped us do. Very clean and and the air conditioning works very well.
Lorella is a great host - we asked on the off chance if she had a BBQ and a few hours later a small charcoal BBQ was delivered which was just perfect. She also left us fresh figs one day and a jar of her homemade capers! It made for a perfect relaxing holiday - almost two weeks with lorella. She was also helpful for suggestions in Lipari itself. If self catering would recommend the fishmonger and butcher in Lipari itself.