Leasehold reform continues to be one of the most significant topics in UK property law. UK leaseholders are awaiting the long-promised abolition of marriage value — a cost that has made lease extensions and freehold purchases considerably more expensive. Although Parliament has legislated for its removal, marriage value has not yet been abolished in practice.
This article explains the current and proposed law, what marriage value is, how it currently operates, and when the change is expected to take effect under the latest leasehold reform legislation.
The Leasehold and Freehold Reform Act 2024
The introduction of the Leasehold and Freehold Reform Act 2024 (LAFRA) is set to bring significant changes for leaseholders and property owners across England and Wales. The Act increases the statutory lease extension term from 90 years to 990 years, abolishes marriage value, and ensures that all extended leases carry only a peppercorn (£0) ground rent. In addition, the Government has proposed introducing a £250 per annum cap on ground rent for existing leases. This cap is intended to protect leaseholders who still pay ground rent under historic leases that predate the Leasehold Reform (Ground Rent) Act 2022. The proposal has not yet come into force, but once implemented, it will apply only to existing leases that continue to attract ground rent, ensuring no leaseholder pays more than £250 annually. New or extended leases will continue to be restricted to a peppercorn (£0) ground rent. Once the Act comes into force, it is expected to impact the overall cost of extending a lease, potentially making the process more affordable for many leaseholders.
These reforms have been widely welcomed by leaseholders and campaign groups as a long-overdue step towards correcting long-standing imbalances in the leasehold system. However, while the legislation has been passed, the abolition of marriage value and the introduction of the 990-year lease extension term have not yet been brought into force.
What Is Marriage Value?
Under the Leasehold Reform, Housing and Urban Development Act 1993, leaseholders of flats have a statutory right to extend their lease by 90 years at a peppercorn (zero) ground rent. In doing so, they must pay a premium to the freeholder — a figure based on the property’s value, the ground rent, and the remaining lease length.
A key element in calculating this premium is marriage value.
Marriage value represents the increase in the property’s overall market value after the lease is extended or when the freehold is purchased collectively. The law assumes this “extra value” should be shared between both, the leaseholder and freeholder.
It only applies when a lease has fewer than 80 years remaining. Once a lease falls below that threshold, the cost of extension rises sharply — often by significant amounts.
To get an idea of what a leasehold extension may cost you, use our free, online Lease Extension Calculator
Issues with Marriage value
Many leaseholders see marriage value as unfair because it effectively penalises those who hold shorter leases, particularly in high-value areas such as London. Critics argue it unjustly enriches freeholders and can trap leaseholders in expensive and complicated negotiations.
The government has acknowledged these concerns, making the removal of marriage value a central feature of its ongoing leasehold reform programme.
Has Marriage Value Been Abolished Yet?
While the Leasehold and Freehold Reform Act 2024 includes the provision to remove marriage value, those sections of the Act have not been brought into force. Before they take effect, the government must introduce secondary legislation to define the new valuation method that will replace the existing one.
Until that happens, the current law under the 1993 Act remains unchanged, meaning:
- Marriage value is payable where the unexpired term is 80 years or less
- The split of uplift between leaseholder and freeholder remains legally binding.
Government consultations on the detailed valuation framework are ongoing, and while ministers have reaffirmed their commitment to the reform, no implementation date has been announced. Many commentators predict the changes are unlikely to take effect before late 2026, and possibly later. Our leasehold solicitors are keeping up to date with all new developments and can advise whether it’s wiser to extend now or wait for the reforms.
What Should Leaseholders Do Now?
If your lease is approaching 80 years, it’s essential to seek advice from anlease extension solicitor before it drops below that threshold. Waiting for the abolition of marriage value may seem tempting, but given the uncertainty around timing, it could prove costly if your lease continues to shorten.
Extending now under the current law could still be the most financially prudent choice — particularly for properties at risk of losing value as their lease term diminishes.
Formal and Informal Lease Extensions
When extending a lease, leaseholders can proceed in one of two ways: through a formal (statutory) lease extension under the Leasehold Reform, Housing and Urban Development Act 1993, or by negotiating an informal (voluntary) lease extension directly with the freeholder. While both routes ultimately achieve the same purpose—prolonging the lease term—the legal protections, costs, and risks involved differ significantly.
Formal Lease Extension
A formal lease extension is carried out under the statutory framework provided by the 1993 Act. This route provides leaseholders with a clear legal right to extend their lease and ensures strong procedural protection throughout the process.
Under the current law, a successful formal extension grants the leaseholder an additional 90 years on top of the existing term, with the ground rent reduced to a peppercorn (nil). Once the relevant provisions of the Leasehold and Freehold Reform Act 2024 come into force, this will increase to 990 years—effectively providing a considerably longer interest in the property.
The formal route follows a strict legal procedure:
- The leaseholder serves a Section 42 Notice on the freeholder, stating their right to extend and proposing a premium;
- The freeholder must issue a Counter-Notice within the statutory time limit; and
- If the parties cannot agree on the premium or terms, either side may apply to the First-tier Tribunal (Property Chamber) for determination.
This process ensures transparency and prevents the freeholder from imposing unreasonable terms or delaying negotiations. However, it can be technically complex and time-consuming, involving formal valuation reports, compliance with notice requirements, and legal representation.
At Starck Uberoi Solicitors, our property team handles every stage of the statutory lease extension process, from serving the initial notice to completion and registration of the new lease. We work closely with experienced valuers to ensure the premium is fair and the transaction progresses efficiently.
For an estimate of a lease extension cost, try our lease extension calculator.
Informal Lease Extension
An informal (or voluntary) lease extension is negotiated privately with the freeholder outside the statutory process. This route can, in some cases, be more flexible and faster to arrange than the formal route. However, it does not offer the same level of legal protection, and leaseholders must take particular care to ensure that the agreed terms are fair and commercially sound.
Unlike the statutory procedure, there is no fixed term for informal lease extensions. The length of the extension is entirely negotiable between the parties. This means the freeholder may offer an additional term that is shorter, equal to, or longer than 90 years — in some cases extending the lease by 125, 250, or even 999 years, depending on the agreement reached.
While the potential for a longer lease can appear attractive, informal offers can sometimes come with unfavourable conditions, such as:
- The continuation or introduction of ground rent clauses, sometimes escalating;
- Higher premiums than those calculated under the statutory formula; or
- Restrictive or unusual covenants that may affect mortgageability or future resale value.
Because there is no statutory framework governing informal extensions, freeholders are not legally obliged to proceed once negotiations begin and can alter or withdraw their offer at any stage. For this reason, informal extensions are generally more suitable for leaseholders who have longer unexpired terms—typically over 85 years—and wish to negotiate bespoke terms for convenience or commercial reasons.
At Starck Uberoi Solicitors, our property and leasehold law specialists review proposed informal offers in detail, identify any clauses that may adversely affect you, and negotiate directly with freeholders to secure terms that genuinely protect your long-term interests. We ensure that your agreement maintains your property’s value, complies with lender requirements, and avoids pitfalls that could otherwise prove costly.
Conclusion
The planned removal of marriage value marks a major step towards fairer leasehold ownership. However, until the relevant provisions of the Leasehold and Freehold Reform Act 2024 are formally implemented, marriage value continues to apply under current law.
Leaseholders should therefore make decisions based on today’s legal framework rather than on future reforms whose start date remains uncertain.
How Starck Uberoi Solicitors can help
Our highly experienced leasehold solicitors are members of ALEP which offers a badge of reassurance that we are leasehold law specialists. With Starck Uberoi, you can be confident that your lease extension will be handled with the utmost efficiency. To book an appointment with one of our lease extension solicitors, please call 020 8840 6640 or email solicitor@starckuberoi.co.uk.
Our Offices
Our Brentford Solicitors, are located on the High Street in a grand three-story building, just a short distance from Brentford County Court. Our Belgravia solicitors are located Just a 5-minute walk from Victoria tube station in Grosvenor Gardens. Our Ealing solicitors are only a short walk from both Ealing Broadway and South Ealing and our Richmond Solicitors have the pleasure of overlooking the picturesque Richmond Green. Finally, our Solicitors in Canterbury are located in the within the UNESCO World Heritage Site of Canterbury Cathedral. Our partner, Raminder Uberoi, can also offer a Notary Public Service at any of our London offices.
ALEP
We are proud to be Members of the Association of Leasehold Enfranchisement Practitioners (ALEP). ALEP Members are vetted to ensure that they have the requisite expertise in leasehold enfranchisement. ALEP acts as a badge of assurance and confirms that we can handle potentially complex collective enfranchisement transactions.
