Una St Ives Administration: Holiday Lets Unaffected After Kingfisher Collapse

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 - Kingfisher Una Resorts Limited (Kingfisher) - entered administration. Una St Ives itself is not in administration, but the freeholder that owns the land on which the Una resort sits is.

This article was prepared by the Una St Ives Leaseholders Association in consultation with property law professionals.

According to the Joint Administrators’ Notice issued by Grant Thornton UK LLP, “The privately owned lodges and villas at Una St Ives, along with the leisure facility, are not affected by the administration and remain open and fully operational.”

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

This article explores how the administration of the freeholder at Una St Ives affects different stakeholders—and why holidaymakers can continue to book with confidence.

Privately Owned Holiday Lets

The administration of the freehold company, Kingfisher, has no impact on holiday bookings or day-to-day resort operations.

All holiday lodges and villas are individually owned and operated independently of KURL. Likewise, the leisure centre and associated amenities are under separate ownership and continue to operate as normal.

Bookings for accommodation at Una St Ives are managed by a number of reputable, ABTA-accredited holiday letting agencies such as Luxury Coastal and Carbis Bay Lodge, providing guests with financial protection and peace of mind.

To help clarify the facts and address common concerns, the following sections answer key questions about the administration process, leasehold protections, and what it means for visitors and property owners at Una St Ives.

Is Una St Ives in Administration?

Una St Ives is the name of the resort location, which includes privately owned leasehold lodges and villas, Carbis Café, and the Una Spa & Leisure facilities. These businesses and properties continue to operate as normal.

The company currently in administration is Kingfisher, which owns the freehold land beneath the resort. 

Kingfisher is legally and operationally separate from the individual property owners and businesses at Una St Ives. The administration applies only to Kingfisher, and the company is now under the control of appointed administrators and being marketed for sale.

It is important not to conflate the Una St Ives resort with Kingfisher—they are distinct entities, and the resort remains fully open and operational.

How are Leaseholders Affected When a Landlord Enters Administration?

When a company that owns freehold land enters administration, an appointed administrator assumes control of the company’s assets with the objective of repaying its creditors.

At Una St Ives, the freehold land—on which 34 privately owned holiday lodges, the leisure centre, and the spa are located—is among the assets held by the freeholder, Kingfisher. However, these properties and facilities are held under long-term leasehold agreements and are independently owned and operated. As such, the administration of the freehold company does not affect the day-to-day operation, availability, or management of the holiday lets or resort amenities.

How Leaseholders are Protected

The privately owned holiday lodges and villas at Una St Ives, along with the company operating the leisure centre and spa, each hold individual leasehold agreements with the freeholder. These formal legal contracts remain binding regardless of changes to the freehold’s ownership.

Provided there are no unusual clauses permitting termination or renegotiation in the event of the freeholder's insolvency, the administration process does not affect the validity of these leases. Leaseholders retain full legal rights to occupy, use, and operate their properties in accordance with their existing agreements.

While leaseholders remain protected under their agreements, the question of who ultimately owns the freehold may still be of interest to those looking to secure long-term control and certainty over their property rights.

Right of First Refusal (RFR) and Freehold Acquisition Options

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 the RFR Apply to Holiday Lets with Occupation Restrictions?

The key consideration is whether holiday lets that are subject to planning restrictions on full-time occupancy qualify as residential premises under the Landlord and Tenant Act 1987, which governs the RFR.

RFR and the Definition of Residential Premises

Under the Landlord and Tenant Act 1987 (the Act), RFR applies only to buildings containing flats, and only where at least 50% of the internal floor area is in residential use. Detached leasehold houses or lodges do not qualify, as the legislation specifically applies to flats within a single building, rather than to estates comprising individually demised leasehold units in separate structures.

How Planning Restrictions Affect Qualification

In the context of leasehold flats, the existence of a holiday-use planning restriction—such as a condition prohibiting occupation for more than a specified number of consecutive days—creates a legal grey area.

Courts have held that, to qualify as residential premises under the Act, properties must be capable of use as permanent dwellings. Where planning conditions restrict occupation to short-term holiday use, such properties may be classified as commercial holiday accommodation rather than residential, meaning the RFR may not apply.

However, in the case of Una St Ives, the holiday lets are detached leasehold houses, not flats. As such, RFR does not apply, regardless of any occupancy restrictions. The 1987 Act is limited in scope to leasehold flats within buildings and does not extend RFR rights to leasehold houses, even if they are structurally residential in nature.

Understanding whether RFR applies also depends on how the property is classified. This becomes particularly nuanced when developments feature both residential and non-residential elements, or where planning restrictions limit occupancy.

Mixed-Use Considerations

Where a freehold comprises a mix of residential flats and units subject to holiday-use restrictions, the 50% residential use threshold under the Act may still be met, potentially triggering the RFR for qualifying leaseholders of the residential flats.

However, where all leasehold units are subject to planning conditions restricting occupation to holiday use—as is the case with the Una St Ives properties—the freehold is likely to be classified as a commercial asset. In such circumstances, RFR is unlikely to apply, as the premises would not meet the statutory definition of residential property under the Act.

Where properties are configured as flats within a building, the presence of holiday-use restrictions may affect their eligibility for RFR, depending on how courts interpret their status as residential premises under the Act.

In contrast, where properties are detached leasehold houses, as is the case at Una St Ives, RFR does not apply—regardless of the use or occupancy restrictions in place.

Leaseholders interested in acquiring the freehold should consider alternative routes, such as a voluntary purchase agreement or, where applicable, statutory leasehold enfranchisement under the Leasehold Reform Act 1967, rather than relying on RFR provisions.

Speaking to the Law Gazette, James Vernor-Miles a partner at Hunters, London said, "provisions will be brought into force, meaning that more leaseholders in mixed-use buildings can take over management from their freeholders and, in most cases, leaseholders making claims will no longer have to pay their freeholder’s costs."

At this stage, however, these provisions are unlikely to apply to Un leaseholder as the leasehold properties are restricted to commercial holiday let use only.

Are there any other options?

Even where the RFR does not apply, leaseholders may still explore the possibility of acquiring the freehold by forming a consortium and approaching the administrator or any prospective purchaser directly to negotiate a voluntary sale.

If leaseholders believe that the properties should qualify as residential premises under the Act, they may choose to pursue legal action to assert their position. However, in this case, the presence of planning restrictions limiting use to short-term holiday accommodation is likely to exclude the properties from being classified as residential for the purposes of the Act.

Crucially, at Una St Ives, all leaseholders—including operators of the leisure centre and spa—retain full legal and operational control over their properties and businesses. This ensures the ongoing stability and continued operation of the resort, irrespective of changes in the ownership of the freehold.

In summary, while legal mechanisms like RFR may not apply in this case due to the nature of the properties and their planning status, leaseholders remain well-positioned to continue operations and explore future opportunities through other routes.

Marketed for sale

The freehold at Una St Ives is currently being marketed for sale as part of the ongoing administration process. It is expected that the freehold land will be transferred to a new owner in due course. Leaseholders will continue under the same terms, dealing with a new freeholder once the sale is complete.

For those operating businesses at the resort, this continuity provides ongoing stability. For holidaymakers, it means that bookings and services will remain unaffected.

Ultimately, the administration of the freeholder represents a financial restructuring exercise and does not interfere with the day-to-day operations of leasehold properties or resort amenities. Visitors can continue to enjoy their holidays at Una St Ives with confidence, and leaseholders can continue to manage their properties and businesses with minimal disruption.

The future of Una St Ives

While the administration of the freeholder could have introduced significant uncertainty, it is the leaseholders who have played a vital role in ensuring the continued success of Una St Ives as a thriving holiday destination. Through the independent operation and careful management of their properties and businesses, they have maintained the resort’s appeal and enabled uninterrupted guest experiences.

Their investment and resilience have safeguarded the resort’s future, preventing what could have been significant disruption or even closure. Instead, the leaseholders have provided stability, ensuring that Una remains a welcoming and vibrant destination for years to come.

If you are a leaseholder or holiday let owner affected by any of the matters discussed in this article, please don’t hesitate to contact our leasehold support team on 0800 488 0618.

If you are a creditor of Kingfisher Una Resorts Limited (Kingfisher), please email Grant Thornton UK LLP  cmusupport@uk.gt.com in the first instance.

Sources:

Additional details about the administration are available from Insolvency Insider, a reputable UK insolvency tracking platform.

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