You can use magic in the cellar that you found, so can bring locked chests there to lockpick. Also, you can toss them out the front gate, or over the castle walls, to get later.
I piled all my excess loot in a chest, and tossed it out the front gate before giving the teddy bear to Leila, so I would not be carrying too much in the dungeon. I still collected a lot of loot there, though, and had to stash it in a barrel (I put a flag on the map, so I could come back for it later).
