Una St Ives holiday lets open as usual in 2025 thanks to leaseholders

In 2024, Una St Ives, a well-known holiday resort in St Ives, Cornwall, became a focal point in the local press when the freeholder entered administration. Una St Ives itself is not in administration, but the freeholder that owns the land on which the Una resort sits is.

Despite the uncertainty surrounding the freehold company, the resort's operations, including privately owned leasehold holiday lets like Carbis Bay Lodge, and a separately owned leisure centre, continue to operate without disruption.

This article is a case study in how the process of administration affects the different stakeholders and why holidaymakers can still book their stays with confidence.

Holiday bookings with private lodges and villas are unaffected

For those looking to book a holiday at Una St Ives, the administration of the freehold company does not impact holiday lets or resort facilities. Individual holiday lets and the leisure centre are owned and managed separately from the freehold company.

Holidaymakers can book accommodation with confidence, as the administration process does not affect the availability or management of holiday lets. Bookings for Una St Ives are managed by various ABTA-accredited holiday letting agencies, meaning holidaymakers' money is protected. 

The leisure centre and other amenities, all in separate ownership to the Freehold company, remain operational, ensuring guests receive the full holiday experience.

Is Una St Ives in administration?

No, Una St Ives is not in administration. Una St Ives is the name of the resort on which the leasehold properties, Carbis Café and Una Spa & Leisure are situated. Kingfisher Una Resorts Limited, the owner of the freehold land at Una St Ives, is in administration and is being actively marketed for sale by the administrator.

What happens when a freehold landowner enters administration?

When a company that owns freehold land enters administration, an appointed administrator takes control of the company’s assets to repay creditors.

In the case of Una St Ives, the freehold land on which the 35 private holiday lets, the leisure centre, and the spa sit, is part of the freeholder's assets. However, because the holiday lets and the leisure centre are independently owned under leasehold agreements, the administration of the freehold does not impact their operation.

How leasehold properties are protected

The privately owned holiday lodges and villas, and the company that owns the leisure centre and spa at Una St Ives, have individual leasehold agreements with the freeholder. These leases remain legally binding even if the freeholder changes due to administration. 

Lease agreements are legal contracts, and assuming there are no irregular clauses allowing for lease termination or renegotiation due to freeholder insolvency, the administration of the freeholder does not terminate the leases. Leaseholders retain their rights to use and operate their properties.

Can the leaseholders acquire the Una St Ives freehold?

The Right of First Refusal (RFR) under the Landlord and Tenant Act 1987 applies to certain residential leaseholders when the freehold goes up for sale. However, its application depends on whether the properties in question qualify as residential premises under the Act.

Does RFR apply to holiday lets with occupation restrictions?

The key issue is whether holiday lets with planning restrictions qualify as residential premises under the Landlord and Tenant Act 1987, which governs the Right of First Refusal (RFR).

RFR and the definition of residential premises

Under the Act, RFR applies only to buildings containing flats where at least 50% of the internal floor area is in residential use. Detached leasehold houses do not qualify, as RFR applies specifically to flats within a building rather than to estates of separate leasehold properties.

How planning restrictions affect qualification

For leasehold flats, the presence of a holiday-use restriction (e.g., a condition prohibiting occupation for more than 30 consecutive days) raises a legal grey area. Courts have ruled that properties must be capable of use as permanent dwellings to be considered residential premises under the Act. If planning restrictions limit occupation to short-term holiday use, the flats may be deemed commercial holiday accommodation rather than residential property, meaning RFR may not apply.

However, as the Una St Ives holiday lets are detached leasehold houses rather than flats, RFR does not apply at all, regardless of occupancy restrictions. The 1987 Act does not extend RFR rights to leasehold houses, even if they are structurally residential.

Mixed-use considerations

If the freehold includes both residential flats and holiday-restricted units, the 50% residential rule may still apply, meaning RFR could be triggered for qualifying leaseholders of flats. However, if all the leasehold units are subject to holiday-use restrictions - as they are with the Una properties - the freehold may be classified as a commercial asset, making RFR unlikely to apply.

Conclusion

If the properties are flats within a building, holiday-use restrictions could affect their eligibility for RFR, depending on how courts interpret their status as "residential premises."

If the properties are detached leasehold houses, RFR does not apply at all, regardless of their use.
Leaseholders looking to acquire the freehold should explore voluntary purchase or, if applicable, statutory leasehold enfranchisement under the Leasehold Reform Act 1967 instead of relying on RFR.

Can Leaseholders still try to buy the freehold?

Even if RFR does not apply, leaseholders could form a consortium and approach the administrator or the new owner directly to buy the freehold.

If the leaseholders’ believe the properties should be considered residential for RFR purposes, they could take legal action.

In this case, the holiday let planning restriction likely prevents RFR from applying, as the properties are not considered ‘residential premises’ under the Act.

The key point in the case of Una St Ives is that leaseholders, including the leisure centre and spa operators, maintain full control over their businesses, ensuring the resort's continued operation.

Looking ahead

The Una St Ives freehold is currently up for sale. As the administration process continues, the freehold land will likely be sold to a new owner. The terms of leasehold agreements will remain in place, and leaseholders will simply deal with the new freeholder after the sale. For those running businesses at the resort, this means continued stability, and for holidaymakers, it ensures that bookings remain unaffected.

Ultimately, the administration of the freeholder is a financial restructuring process that does not disrupt the day-to-day operations of leasehold businesses or holiday lettings. Visitors to Una St Ives can continue to enjoy their holidays without concern, and leaseholders can operate with minimal impact from the administration process.

Leaseholders are the backbone of Una St Ives’ future

While the administration of the freeholder could have led to uncertainty, it is the leaseholders who have ensured the ongoing success of Una St Ives as a holiday destination. By maintaining and operating their individual properties and businesses, they have preserved the resort's appeal, allowing holidaymakers to continue visiting without disruption.

Their investment, dedication, and ability to sustain operations independently of the freeholder have effectively safeguarded the resort’s future. Without them, Una St Ives could have faced closure or significant operational challenges. Instead, the leaseholders have managed to ensure that the resort remains a thriving and attractive destination for years to come.

If you are a holiday let owner or leaseholder, and you have been affected by any of the issues discussed in this article, please contact our leasehold team on 0800 488 0618.