…is the Asylum located? For some reason I get the feeling it’s in or near a mountain somewhere based on an old photograph in the paper I think.
Wonder if it’s anywhere near Rothbury… 
We haven’t disclosed this information on purpose and this won’t be known within the game itself. But, I can tell you (confidentially) that the asylum is supposed to be located in the mythical town of Kingsport 
Is the Hanwell Mental Institute loosely named after Lovecraft mythos? 
Yes, only loosely
You see, the “actual” Hanwell Asylum located in the UK is mentioned in The Rats in the Walls, so this name inspired “our” Hanwell Mental Institute. But they only share the name as everything else about them is different.
This is particularly fun as people have been (and will be) confusing Hanwell Institute with a real place