Could it not be put down to an innocent mistake ...
As in "Oh sorry, I didn't realize that taking a chain-saw to the tree would do that amount of damage"
I think the tenants need to pay to have the tree replaced, as painlessly as possible, maybe by adding an extra few quid to the weekly rent.
I'd be fuming.
What does your lease say about attending the garden?
They mentioned they were green fingered, they were renting a rural dwelling, they may have thought that it was acceptable to cut a tree down and they may have mistaken the type of tree that it was, hence the innocent mistake - its not beyond the realms of possibility.
If you are renting a rural dwelling to a retired couple they may be looking at it very long term therefore I would not go adding to the cost of rent to replace a tree. If the OP is angry to the point of not being able to deal with them then maybe hand them their notice, still be down your tree and go look for new tenants. As hard as it is now to detach yourself from the emotions of what they have done it is necessary in order to properly run a business.
"The lawn/garden to be maintained in good order - lawnmower provided."
That could be an issue for you, as it's very open-ended as to what they should/should not do in the garden.
and asked me to pay for some gravel to be laid down so its not mucky as they alight their camper
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