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Lundin Links Hotel: Community in the dark as developer bids to wind up company

Lundin Links Hotel could go into liquidation
The Lundin Links Hotel has been empty for eight years.

The owners of a derelict Fife hotel have now launched a bid to wind up the company.

The move has been slammed as a “last straw” for the community living in the shadow of Tudor-style Lundin Links Hotel.

It has become a magnet for vandals since it closed in 2014.

The owners of the Lundin Links Hotel face liquidation. Picture Steve Brown/DCT Media.

And despite plans by developer Kaptial Residential to convert it into 35 flats, it has fallen into serious disrepair.

Work on the Category C-Listed building never started.

And there were complaints the company was failing to engage with the community.

It has now emerged Kapital Residential has petitioned the Court of Session in Edinburgh for a wind-up order, the first step towards liquidation.

And a provisional liquidator was appointed on June 23.

Peter Aitken, chairman of Largo Area Community Council, said: “This is the last straw for the community.

“The company did not even have the decency to tell the community about this.”

Lundin Links Hotel situation ‘beyond disappointing’

Fife Council took court action to secure the eyesore building in March after almost every window was smashed.

But just two months later firefighters were called to extinguish a blaze there.

Mr Aitken said he hoped the liquidators would sell the hotel.

Scottish Fire and Rescue Service at the derelict Fife venue in May.

“It may be a blessing in disguise,” he said.

“Hopefully the new owners will communicate with the community unlike the previous owners.”

He added: “There have been several break-ins, a tree in the hotel grounds fell on top of a parked car and the hotel has been set on fire twice.”

North East Fife MP Wendy Chamberlain said it was “beyond disappointing” that the community had been left in the dark.

“The hotel has been the source of serious problems, including anti-social behaviour and the recent fire,” she said.

“Those who live around it have been left to worry as the building deteriorated.

“The least they deserve is to be kept up to date on its status.”

Questions over status of Scottish Government loan

Kapital Residential previously said the delay in developing the site was due to a dispute with Scottish Water over drainage.

It said the coronavirus pandemic had also had an impact.

The company secured a taxpayer-funded loan on the property in 2020, when it was granted £850,000 under the Scottish Government’s Emergency Covid Liquidity Fund.

The £18 million fund was set up to protect jobs and suppliers in the housebuilding industry during lockdown.

Kapital Residential has until July 22 to repay any outstanding amount on the loan.

Wendy Chamberlain said it was unclear what impact liquidation would have.

She said: “I will be writing urgently to the Scottish Government to ascertain what the status of the hotel will now be.

“And I will continue to work with the local community council to find a solution to this long-running problem.”

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