Marriage Value Explained: Why Lease Extension Costs More Below 80 Years

What marriage value is

Marriage value is the extra payment a leaseholder must make to the freeholder when extending a lease that has fewer than 80 years remaining. It exists because shorter leases are worth significantly less than longer leases of the same property, and extending the lease creates a step-change uplift in value. Under the old regime, that uplift is shared 50:50 between the leaseholder and the freeholder, on top of the basic lease extension premium.

The result is that lease extension is dramatically more expensive once you fall below 80 years. A flat that costs £15,000 to extend at 81 years left can cost £30,000 or more at 79 years left.

How marriage value is calculated

Marriage value is the difference between two figures:

1. The combined value of the freeholder's interest plus the leaseholder's interest before the extension

2. The combined value of the freeholder's interest plus the leaseholder's interest after the extension

If extending the lease takes the property value from £380,000 to £420,000, that £40,000 uplift is the marriage value, and the leaseholder pays half of it (£20,000) to the freeholder on top of the basic premium.

The exact figures depend on the deferment rate (currently around 5%) and the capitalisation rate used by the surveyor. Both sides typically instruct their own surveyors and negotiate.

The 80 year cliff

The 80 year threshold is set by statute. Above 80 years, marriage value is treated as zero and the freeholder gets only the basic premium. Below 80 years, marriage value applies and adds tens of thousands to the cost. The cliff means that a single year (going from 81 to 79) can change the cost of extending by a large amount.

This is why every leasehold guide tells you to extend your lease before it drops below 80 years. The cost difference between 85 years remaining and 79 years remaining is often greater than the cost of waiting 6 years.

Leasehold and Freehold Reform Act 2024

The 2024 Act abolishes marriage value entirely. Once that provision is in force, leaseholders extending a lease below 80 years will no longer pay the additional marriage value component. This is one of the most significant changes for leaseholders in a generation, and it tilts the economics of extending sharply in favour of the leaseholder.

The provisions are being commenced in stages during 2025 and 2026. Until your specific provision is commenced, the old rules still apply, so check the current commencement status with a specialist leasehold solicitor before deciding whether to extend now or wait.

How to know whether you need to worry

Marriage value only matters if your lease has fewer than 80 years left. To find out, you need the original lease term and start date. You can confirm whether your property is leasehold at all by searching it on Property Passport UK at [/search](/search), then obtain a copy of the title register from HM Land Registry for the precise lease term. Property Passport UK pulls tenure data directly from HMLR for every one of the 19.35 million properties in England and Wales.

Look up any leasehold property on Property Passport UK

Property Passport UK shows tenure (freehold or leasehold) sourced directly from HM Land Registry for every one of the 19.35 million properties in England and Wales. For leasehold properties, you can also see lease length, ground rent, and service charge information where it has been published. Search by postcode or address at [propertypassport.uk/search](/search), or look up an EPC at [/epc](/epc).

Related guides

• What is a leasehold property
• How to extend a lease
• Leasehold Reform Act 2024 explained
• Service charge disputes