A paranoid transvestite stabbed a friend to death before watching an Elton John DVD days after being released from a psychiatric unit, an inquest has heard.

John McKenna, 50, was found lying dead in his bath at his School Lane flat in Egham, after receiving a fatal stab wound in his back by John Churchill on March 27, 2006.

An inquest at Woking Coroner's Court on Monday heard forensic reports revealed Mr McKenna died of shock and haemorrhaging caused by a fatal stab wound from a carving knife driven into his back with such force that it punctured his right lung and fractured a rib.

Mr McKenna's body was discovered by police after Churchill, who was well known for cross-dressing in Addlestone, handed himself in at Egham police station.

He had only been released from the Abraham Cowley unit at St Peter's Hospital, Chertsey, a few days earlier where he had been voluntarily staying after attempting suicide by jumping on the tracks at Clapham Junction.

Having a history of attempted suicides and admitted to hospital only a few weeks before the incident following an attempted castration, Churchill had travelled to London to return goods he had stolen from a shop.

However, instead he had visited a male prostitute in Soho where he paid to be whipped and given two minor tranquillisers pills before attempting to kill himself.

Dr Giles Townsend who had reviewed Churchill at the unit told the court: "His name was familiar because he was someone who had a history of self harm. I believed he was suffering from borderline personality disorder."

However, Dr Townsend said he believed Churchill was in a stable state when he left the unit on Friday, March 24.

In May 2007 Churchill, who believed Mr McKenna was "out to get him", was detained indefinitely under the Mental Health Act after pleading guilty to manslaughter on the grounds of diminished responsibility.

Psychiatric reports read out during the hearing suggested that Churchill, of Englefield Green, was actually suffering from paranoid schizophrenia.

Mr McKenna's sister Kathleen Slade told the hearing: "I'm quite grateful its (the inquest) built quite a picture of John Churchill. I had no idea what kinds of man he was. It's enlightened me a lot."

Coroner Karen Johnson recorded a verdict of unlawful killing and said: "What we have heard here is that he was a man with complex psychological problems who was being regularly reviewed."