Marriage value

Marriage value is the increase in a property's value created when a short lease is extended or the freehold is bought, which a leaseholder of a flat with fewer than 80 years remaining must currently split equally with the freeholder under the Leasehold Reform, Housing and Urban Development Act 1993. It forms part of the premium payable and can add thousands of pounds to a lease extension.

The 80-year rule

Marriage value applies only once a lease falls below 80 years. While more than 80 years remain, it is treated as nil, and the premium reflects only the cost of the extra term and the loss of ground rent. The moment a lease drops below 80 years, marriage value becomes payable and the cost of extending rises sharply. From working with self-managing landlords who own leasehold flats, the 80-year threshold is the single date we see overlooked most often, because the jump in cost is sudden rather than gradual.

How marriage value is calculated

Marriage value is the difference between the combined value of the flat and the freeholder's interest before the lease is extended and their combined value afterwards, once the leaseholder holds a long lease at a peppercorn rent. That uplift is split 50/50 between leaseholder and freeholder. The valuation date is fixed by the date the leaseholder serves the formal notice, so acting promptly matters. Because the figures are contested, both sides usually instruct specialist valuers, and a dispute is settled by the First-tier Tribunal (Property Chamber).

Will marriage value be abolished?

The Leasehold and Freehold Reform Act 2024 will abolish marriage value, which would remove this cost for leaseholders with short leases. As of June 2026 that change is not yet in force, because it depends on valuation regulations the government has not yet made. Until those regulations take effect, marriage value remains payable under the 1993 Act. Landlords often ask us whether to wait for the reform, but a lease slipping further below 80 years in the meantime only increases the premium, and no commencement date has been confirmed.

Frequently asked questions

How can I avoid paying marriage value? 

Extend your lease or buy the freehold while more than 80 years remain. Serving the formal notice before the lease falls below 80 years fixes the valuation date, so marriage value does not arise even if the claim completes later.

How much does marriage value add to a lease extension? 

It varies with the property's value and the unexpired term, but marriage value is often between a third and a half of the total premium on a short lease, which can mean several thousand pounds or more in higher-value areas.