Lease Extensions: Marriage Value and the Statutory Route

Marriage value is the additional value created when a short lease is extended — and under the law currently in force it is payable only on leases with fewer than 80 years left, which is why that threshold dominates every conversation about lease extensions. A qualifying leaseholder has a statutory right to extend (today, an extra 90 years with ground rent reduced to a peppercorn), or can negotiate informally with the freeholder. This guide explains marriage value, the statutory versus informal routes, what really drives the premium, the process and timeline, and — crucially — where the much-discussed 2024 reform actually stands in 2026.

What is marriage value?

Above 80 years, marriage value is treated as nil, so it forms no part of the premium. The moment a lease falls below 80 years, it appears — and the premium can step up noticeably as a result. That single mechanic is the reason advisers so often talk about the "80-year cliff".

Why the 80-year mark matters

Because marriage value only attaches below 80 years under current law, the years-remaining figure behaves less like a smooth slope and more like a step. A lease at 81 years carries no marriage value; the same lease a couple of years later, at 79 years, does — and the premium reflects it.

For anyone who intends to extend, the practical implication is straightforward: where extension is the plan, advisers commonly suggest acting before the lease reaches 80 years, so the calculation never picks up marriage value at all. The right answer for any specific flat depends on its value, ground rent and exact remaining term, which is why a specialist valuation matters more than any rule of thumb.

Statutory vs informal: the two routes

There are two ways to extend a lease, and they are not interchangeable. One is a legal right; the other is a private deal.

The statutory route

A qualifying leaseholder can serve formal notice and compel an extension on the terms set by the 1993 Act — currently an additional 90 years added to the remaining term, with the ground rent cut to a peppercorn. If the premium cannot be agreed, either side can refer it to the First-tier Tribunal (Property Chamber). The statutory route gives certainty on terms and a peppercorn ground rent, which is why it is usually the safer choice.

The informal route

An informal extension is simply negotiated with the freeholder on whatever terms both sides accept. It can be quicker and cheaper in straightforward, co-operative cases — but it carries no statutory protection, so it is possible to end up with a worse deal: a shorter term, a retained or escalating ground rent, or unfavourable clauses. Always have informal terms reviewed by a specialist before signing.

The two-year ownership requirement is gone

One welcome change: the previous requirement to have owned the flat for at least two years before exercising the statutory right was removed in early 2025. A qualifying leaseholder no longer has to wait. Other qualifying conditions still apply, so eligibility should be confirmed with a specialist.

What drives the premium

The premium is the price the leaseholder pays for the extension. It is not a single tariff — it is the output of a valuation that weighs several moving parts:

• Years remaining. The shorter the lease, the higher the premium, with a step up once it falls below 80 years and marriage value enters (under current law).
• Value of the flat. Higher-value flats carry higher premiums — marriage value and the reversion are both proportionate to value.
• Ground rent. A high or escalating ground rent increases the premium, because the freeholder is giving up a more valuable income stream.
• Deferment and capitalisation rates. These are the valuation rates surveyors apply to the freeholder's future interests; small changes move the figure.
• Professional costs. On a statutory extension the leaseholder typically pays their own and the freeholder's reasonable costs, plus their own valuer and solicitor.

Because these factors interact, two flats in the same block can have very different premiums. There is no substitute for a specialist leasehold valuation on the specific flat — online calculators give a rough steer at best.

The 2026 position: where reform actually stands

This is the part most articles get wrong, so it is worth stating carefully and checking before you rely on it.

Other elements of the reform programme are also pending rather than live — for example, proposals around longer standard extension terms and a future cap on ground rents have been announced but, at the time of writing, are not yet operative. Commencement dates can change, so verify the current position with a specialist or on legislation.gov.uk before making any decision. Treat any blog — including this one — as a starting point, not the live legal status on the day you act.

The practical takeaway for 2026: do not assume marriage value has gone. For a lease near or below 80 years, the current rules — and the current premium, including marriage value — are what apply until the new valuation regime commences.

The process and timeline

A statutory extension follows a defined sequence. Timings vary with how quickly valuations are agreed and whether terms are disputed.

1. Get a specialist valuation. A leasehold valuer estimates the premium and the likely negotiation range before you commit.
2. Check eligibility and gather documents. Confirm you qualify and assemble the lease, ground-rent details and title information.
3. Serve the initial notice. The formal notice starts the statutory process and proposes a premium.
4. Freeholder's counter-notice. The freeholder responds, typically with a higher figure, opening negotiation.
5. Negotiate the premium. The two valuers work towards an agreed figure.
6. Tribunal if needed. If no agreement is reached, either side can apply to the First-tier Tribunal to determine the premium.
7. Complete. The new lease is granted and registered, with the extra 90 years and a peppercorn ground rent.

End to end, a statutory extension commonly takes several months. An informal extension can move faster where the freeholder is co-operative, but offers none of the statutory protections on term, ground rent or process.

What to watch before you act

• The 80-year threshold. Under current law, letting a lease slip below 80 years adds marriage value to the premium. Where extension is the plan, the timing decision matters.
• Reform timing. The 2024 Act's valuation changes are not yet in force as of mid-2026. Verify commencement before assuming marriage value has been abolished for your case.
• Informal terms. A negotiated extension can carry a retained or rising ground rent or a shorter term. Have it reviewed before signing.
• Costs. Budget for the premium plus your own and the freeholder's reasonable professional costs on the statutory route.
• Financeability. A short lease can block mortgages and depress price — extending restores marketability as well as term.

This is general information, not financial, legal or tax advice — seek independent professional advice before acting on anything in this guide.

Frequently asked questions about lease extensions and marriage value