Lenigrast is from the land of Volgen. He is a blacksmith by trade, and has a daughter who he loves deeply.
Lenigrast arrived in Majula and after arriving set up shop in the first house he could find. It may be that this was Melentia's house, and that Lenigrast simply moved in because he dislikes traveling and roaming about (especially while lugging all his equipment) and so settled for the first house he saw.
The reason why Lenigrast is in Drangleic is problematic, though likely twofold.
It would appear that Lenigrast came to Drangleic as an exiled undead. He mentions that he can't stand flirtatious vagabonds and travelers, and prefers to stay in one place. Yet he has presumably traveled a very long way to reach Majula "the land of exiles" (see Lenigrast's key description). It is also obvious from just looking at him that he is afflicted with the curse, and has proceeded quite far down the path of hollowing, yet his mind remains remarkably sharp.
The other reason Lenigrast came to Drangleic is in search of his "witless" daughter Stone Trader Chloanne, a young woman who "knows her stones". They may have been a partnership back in Volgen as the two working together would make sense, one to find the ore and one to mold it into weaponry. Whatever the case, Lenigrast came to Drangleic to find his daughter again, and yet he never speaks with her, only keeps an eye on her to make sure she is safe.
Lenigrast finds his purpose in smithing and taking care of his daughter, this helps him avoid hollowing completely as there will always be more smithing to do in Drangleic. Once Chloanne arrives in Majula, Lenigrast finds purpose in his smithing once more.
Lenigrast has knowledge of Laddersmith Gilligan, and the worst opinion of him. They are from the same town in Volgen, and being an honest blacksmith it is no wonder that Lenigrast despises someone as dishonest and rapacious as Gilligan. He knows that there are people out for Gilligan's life, but does not know the clear reasons why.
When aggroed, Lenigrast will attack the player with a Giant Club, as opposed to his Blacksmith Hammer.