Police officers have found the body of Barry Horspool, believed to be in his 70s at the upstairs of his home on Tuesday night, ending about 12 hours of siege of the village.
According to the Lincolnshire police, no gunshots were fired and the police entered the building at around10.30 pm, the BBC has reported.
"All residents are now safe to leave their homes and we would like to thank people living in the area for their co-operation and patience," the BBC has quoted a police spokesperson as saying.
"A scene guard will remain at the property in question overnight," he added.
A police officer sustained facial injuries during the incident and a police vehicle was also damaged in the stand-off.
According to a Daily Mail report the stand-off began after the police officers arrived to check the documents of the suspect who was a fire arms license holder.
However the police denied any such incident, and maintained that they arrived at the Chapelgate property after receiving a "concern for safety" call.
The village was sealed-off by the police as the negotiations with the man was going on and the people who were outside their homes were asked to congregate at the nearby schools or stay back at their friends' residences.
The matter has been referred to Independent Police Complaints Commission for investigation.