Marriage Value
Estimate marriage value payable on a lease extension below 80 years.
Introduction
Who this is for: Leaseholders and freeholders negotiating a statutory lease extension.
Why it matters: Marriage value is the uplift created by merging the leasehold and freehold interests, and under the Leasehold Reform Act it is shared equally between the parties where the lease has under 80 years to run. It is often the single largest component of an extension premium.
Typical scenario: A leaseholder with 72 years unexpired calculating the marriage value element before serving a Section 42 notice.
- Not realising marriage value disappears entirely at 80 years and above.
- Using the wrong relativity figure — this is the most disputed input in the whole calculation.
- Assuming the 50/50 split is negotiable; it is fixed by statute.
Inputs
Values
years
Freeholder Interest
Analysis
The leaseholder gains £48,000 in value while the freeholder loses £16,500 of interest, creating marriage value of £31,500. Statute splits this equally, so £15,750 is payable by the leaseholder as part of the premium.
This analysis provides context, not financial advice. Consult a qualified adviser before making investment decisions.
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Live Results
Total Marriage Value
£31,500
Leaseholder Share (50%)
£15,750
Freeholder Share (50%)
£15,750
Marriage Value Applies
Yes — under 80 years