I have done some thinking , and looking at maps.... another possibility for the wood being a dread place would be if it were near enough the paths of the dead to be regarded to be haunted.
There are a couple of villages mentioned in Harrowdale between Dunharrow and Edoras, since "our village " is agricultural and near Edoras it might be / be near "Upbourn" where Harrowdale widens out rather than " Underharrow" in the narrower part of the valley.
The Journeys of Frodo shows a sizeable wood across the Snowbourn from Underharrow. Situated under the shadow of the haunted mountain (Dwimorberg) and only a couple of miles from the door to the Paths of the Dead ..it might reasonably be the source of childhood terror for children in the area, and it would be palusibel for Uncle Sam to have property near the next village. And goodness know what we might find within.
If this is acceptable and doesn't contradict your plans Crystal, then I can use some of this for Hama in my next post...
In the mean time .. I will do something for Elfride .... who will have her work cut out as a Chaperone methinks