The power of leasing allows a party—typically a landowner, lender, trustee, or legal representative—to grant leases over property under specific legal authority. In UK property development finance, this power may be set out in trust deeds, development agreements, or under statutory provisions. It enables the letting of completed units or parts of a site during development phases to secure income or comply with funding terms. Valid exercise of this power must adhere to prescribed conditions, including lease term, rent provisions, and alignment with the development strategy.
In practice, the power of leasing can be an important tool where a development generates rental income before disposal, helping to support cash flow, satisfy lender requirements, or preserve asset value during changing market conditions. The authority must be exercised within the limits of the relevant legal instrument and in a manner consistent with fiduciary or contractual duties, particularly where secured property is involved. Within Security Enforcement and Receivership, the power may be used by an appointed receiver or other authorised party to manage assets effectively while protecting stakeholder interests. It is often considered alongside Power of Sale, as both provide mechanisms for realising or preserving value from property assets under legal authority.
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