Brady Solicitors | Residential Leasehold. Our team advises leaseholders, freeholders and RTM companies on lease extensions, collective enfranchisement and property management disputes.
Leaseholders extending a lease for the first time are often surprised by the premium. When the unexpired term has dropped below 80 years, the reason is almost certainly marriage value. It is the single biggest factor that catches leaseholders off guard, and it can add thousands of pounds to the cost of extending.
The 80-year threshold: why lease extension costs jump
A lease is a diminishing asset. Every year that passes, it loses value, and the property becomes harder to sell or remortgage. But the relationship between lease length and the cost of a lease extension is not linear. There is a specific point where the price jumps: 80 years.
When a lease has more than 80 years remaining, the premium you pay to extend is based on the capitalised ground rent and the value of the freeholder’s reversion. These are relatively modest sums. Once the unexpired term drops below 80 years, an additional element enters the calculation: marriage value.
What marriage value actually is
Marriage value is the increase in the combined value of the freeholder’s and leaseholder’s interests that results from granting the new lease. Under Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, the leaseholder must pay the freeholder 50% of that increase as part of the premium.
How much does marriage value add to a lease extension cost? Consider a flat worth £200,000. With a 90-year lease, the extension premium might be around £5,000 to £8,000. The same flat with a 70-year lease could see a premium of £15,000 to £25,000 or more, because marriage value now forms a substantial portion of the calculation. The shorter the lease, the larger the marriage value component becomes. Online lease extension calculators rarely account for this properly, which is why the figures they produce can be seriously misleading for leases below 80 years and is one of the reasons we would always recommend instructing a surveyor to provide you with valuation advice.
How marriage value is calculated
The calculation under Schedule 13 works by comparing two scenarios. First, the value of the freeholder’s interest and the leaseholder’s existing lease as they stand today. Second, the value of those same interests after the new lease is granted, with the 90-year extension and a peppercorn ground rent. The difference between the two totals is the marriage value. The leaseholder pays 50% of it.
Your valuer will typically give you a range: a low figure, a high figure, and sometimes a mid-point. The premium you’ll actually pay depends on negotiation or, if it goes to the First-tier Tribunal, a determination. This uncertainty about the final figure is one of the things leaseholders find most difficult, but a competent valuer with experience of the local market will narrow that range considerably.
When to extend a lease approaching 80 years
A lease extension below 80 years requires professional valuation and legal advice. The interaction between marriage value, the valuation date, and the statutory notice process creates real financial risk if any element is wrong. We regularly see leaseholders who’ve relied on online calculators or AI-generated advice and arrived at figures that bear no relationship to reality.
If you require advice in relation to a lease extension, please get in touch with our lease extensions department team at enquiries@bradysolicitors.com. We advise leaseholders and freeholders across England and Wales on lease extensions, collective enfranchisement and property management disputes.
Key questions about marriage value and lease extensions
What is marriage value on a lease extension?
Marriage value is the increase in value created by granting a new lease. Under Schedule 13 of the Leasehold Reform, Housing and Urban Development Act 1993, a leaseholder must pay the freeholder 50% of that increase when the unexpired lease term is below 80 years.
How much does marriage value add to a lease extension?
The amount depends on the property value, remaining lease term, and ground rent. As a general indication, marriage value can add £10,000 to £20,000 or more to the premium on a £200,000 flat with a lease below 80 years. The shorter the lease, the higher the figure. To get an accurate estimate we would always recommend instructing a surveyor to provide you with valuation advice.
At what lease length does marriage value apply?
Marriage value becomes payable when the unexpired lease term drops below 80 years. Above 80 years, the premium is based only on the capitalised ground rent and the freeholder’s reversion.
Has marriage value been abolished?
The Leasehold and Freehold Reform Act 2024 includes provisions to abolish marriage value, but as at May 2026 these provisions have not commenced. The current law under the 1993 Act still applies in full.
Should I wait for the reform or extend my lease now?
Waiting carries risk. The lease continues to shorten, the premium continues to rise, and there is no confirmed date for the abolition of marriage value to take effect. If your lease is near or below 80 years, professional advice on timing is essential.
Can I extend my lease myself without a solicitor?
It is legally possible but carries significant risk. A section 42 notice with an unrealistic premium can be treated as invalid, leaving the leaseholder liable for the freeholder’s costs and unable to make a fresh claim for 12 months.
