Leasehold
Leasehold

Marriage Value Calculator

Calculate the marriage value component for leases under 80 years.

AI-Powered
Free to use
Step 1 of 5Property Value

Property Value

What is the freehold (unencumbered) value?

What is freehold value?

This is the theoretical value if the property were sold with no lease restrictions - typically 5-25% higher than the leasehold value depending on remaining lease length.

About the Marriage Value Calculator

What it does and how it helps you

The Marriage Value Calculator helps UK leaseholders understand the marriage value component when extending leases under 80 years. Marriage value represents the increase in property value created when leasehold and freehold interests are combined. Under current law, leaseholders must pay 50% of this value to the freeholder. This calculator uses relativity graphs and the statutory valuation formula to estimate marriage value based on Savills/RICS data.

Calculate marriage value for leases under 80 years
Use industry-standard relativity graphs
Show leaseholder and freeholder shares
Compare value before and after extension

How It Works

Understanding the calculation method

The calculator determines marriage value through the following process:

1. Relativity Assessment - Uses industry-standard relativity graphs (Savills/RICS) to determine what percentage of freehold value your current lease represents based on years remaining 2. Current Lease Value - Calculates your property's current value as a leasehold (typically 82-92% of freehold for 70-80 year leases) 3. Extended Lease Value - Calculates value after extension to 999 years (approximately 99% of freehold value) 4. Marriage Value Calculation - The difference between extended and current value represents the marriage value, of which you must pay 50% to the freeholder 5. Total Premium - Combines capitalised ground rent, reversion value, and your share of marriage value

Marriage value only applies to leases under 80 years and can add £20,000-£50,000+ to extension costs.

When to use this calculator

Use this calculator when your lease is approaching or has fallen below 80 years to understand the marriage value impact on extension costs. Critical for financial planning before serving a Section 42 notice, evaluating whether to extend now or wait for leasehold reform, and purchase negotiations on properties with sub-80 year leases. Understanding marriage value helps you time your extension to minimize costs.

Frequently Asked Questions

Common questions about this calculator

Marriage value is the increase in property value created when the leasehold and freehold interests are 'married' together through lease extension. For example, if your current 75-year lease is worth £280k but would be worth £340k with a 165-year lease (75+90), the marriage value is £60k. Under current law, you must pay 50% (£30k) of this to the freeholder as part of the extension premium.
The 80-year threshold was established by the Leasehold Reform Act 1993 as a compromise. Above 80 years, the lease still retains substantial value and the uplift from extension is modest, so no marriage value is payable. Below 80 years, the value deteriorates significantly, creating substantial marriage value that Parliament decided should be shared 50/50 between leaseholder and freeholder.
Marriage value varies based on property value and lease length. For a £350k flat at 75 years, marriage value might be £40-60k (your share: £20-30k). At 65 years, it could be £80-100k (your share: £40-50k). The shorter the lease, the higher the marriage value. This is why extending before 80 years is crucial - it can save tens of thousands.
Relativity graphs show the value of a leasehold property as a percentage of its freehold value, based on remaining lease length. They're produced by valuation firms (Savills, Gerald Eve, RICS) using market data. For example, a 75-year lease might have 85% relativity (worth 85% of freehold value), while a 55-year lease has 65% relativity. These graphs are used by surveyors and tribunals to calculate marriage value.
Yes - the Leasehold and Freehold Reform Act 2024 proposes to abolish marriage value entirely. This will dramatically reduce extension costs for leases under 80 years, potentially saving leaseholders £20,000-£50,000+. However, the exact implementation date is uncertain. If your lease is under 80 years, you may wish to wait for reform, but must balance this against ongoing value deterioration and mortgage restrictions.

Related Property Terms

Marriage value calculationRelativity graphs leasehold80 year marriage valueLeasehold valuation relativityRICS relativitySavills relativity graphSection 42 marriage valueLease extension under 80 yearsFirst-tier Tribunal valuationLeasehold Reform Act marriage value