Leases

Section 9(1) of the Perpetuities and Accumulations Act 1964 did not in terms limit the reversionary interests to which an option could relate to existing interests. It was apparent from the terms of s 9(1) that a relevant reversionary interest needed not be immediately expectant on the lease held by the grantee of the option.

An option to renew contained in a lease would be unaffected by the rule against perpetuities. Section 9(1) did not prevent an option being assigned by way of mortgage to a chargee of the relevant lease. Nor should the option be construed as precluding such an assignment. It was settled law that even a legal assignment could be effected in a relatively informal way. A purported variation of a lease would take effect as a surrender and re-grant if the variation could not be effected without the grant of a new lease. That would be so, in particular, if the extent of the demise or the length of