On the top of a small hill located next to the lighthouse called Kirkjuhól, you find a big stone and next to it a giant hole. The legend says that a steel chest full of golden coins was hidden underneath the stone, and one would only be able to dig it up as soon as the stone had been moved to the side.
Once upon a time, there were two men that were trying to dig their way down to find the treasure chest. After a lot of hard work, they managed to move the stone to the side and at the time that their shovels had made their way through the ground, they attached a strong rope to each of the two rings that were fastened on the sides of the chest.
After a lot of hard work, they almost managed to lift the chest all the way up to the side of the hole. One of the men went down to the bottom of the hole while the other one was standing above saying that "As long as God wants to we will get it up." Then the man down below said that "The chest shall get up from here even if God doesn't want to."
At the same moment, one of the rings loosened its grip of the chest and fell down on the man that was standing in the hole.
Ever since this try was made, no one has tried to do the same. But the ring that fell off the chest is still used as a handle in the new church in Staðarstaðar
The register over properties from 1714 tells us that Kirkjuhól probably once upon a time were a place for sacrifice, and you can even nowadays find some fragments on the spot that tell us the same story.