Legal Question in Real Estate Law in United Kingdom

Re: Pre emption agreement

Neither an Option nor a Pre-emption should an uncertain term of more than 20 Years and 364 days.

The perpetuity period applicable to pre-emption agreements is unclear.

Section 9(2), Perpetuities and Accumulations Act 1964 states:

' (2) In the case of a disposition consisting of the conferring of an option to acquire for valuable consideration any interest in land, the perpetuity period under the rule against perpetuities shall be twenty-one years....'

it was previously thought that section 9(2) would apply to rights of pre-emption as well as options, but this is no longer clear. It would however be a brave man to advise a longer period and it is safest to assume that the perpetuity period applicable to pre-emptions is 21 years until the position is clarified by the courts