Pre-emption clauses and their enforceability
Some landlords insist on pre-emption rights in leases in order to prevent them being assigned to another tenant. This happens where landlords wish to retain control over the tenant mix in a development, and is particularly prevalent in travel hubs and retail centres.
So where an operator wishes to assign a lease on the open market, they are obliged to first offer it back to the landlord. If the landlord decides they are not happy with the potential new tenant, this can in some cases prevent or hinder tenants from assigning their leases.
This can lead to costly delays; the difficulty lies in pre-emption clauses often being poorly drafted, leaving tenants open to doubt over their position.
Detailed guide coming soon!