One of the most important thresholds in leasehold property ownership is the 80-year rule. This rule significantly affects the cost of extending your lease and can have a major impact on the value and mortgageability of your home.
Understanding the 80-year rule helps leaseholders plan ahead, avoid unnecessary costs, and make informed decisions when buying, selling, or extending a lease.
What Is the 80-Year Rule?
The 80-year rule refers to a legal cut-off point in the lease extension process. If your lease has 80 years or less remaining at the time you extend, you are legally required to pay an additional charge known as marriage value.
This makes extending your lease much more expensive than it would be with a longer lease term.
What Is Marriage Value?
Marriage value is the increase in the property’s value that results from extending the lease. The law requires that this increase is shared equally between the leaseholder and the freeholder if the lease has less than 80 years remaining.
Why Is 80 Years the Critical Point?
Before 80 years, the lease extension premium only includes:
- Loss of ground rent to the freeholder
- Reversion value (deferred value of the flat at lease expiry)
After 80 years, marriage value is added to this premium. As a result:
- Costs rise by thousands
- The valuation becomes more complex
- Negotiations may become harder
How Close Is Too Close?
Many leaseholders assume they have time if their lease is at 81 or 82 years — but in reality, processing a lease extension can take months. If your lease drops below 80 years during an informal lease extension process:
- Marriage value becomes payable
- Even if you started the process earlier
Tip: Begin the process when you have at least 83–85 years to avoid crossing the threshold during negotiations.
The good news is that if you opt for a statutory lease extension, we can arrange for your property to be valued and notice served by our solicitors even if your lease has 80 years and a few days remaining – this fixes the valuation date and prevents marriage value becoming payable even if the lease falls below 80 years during the statutory process. We have handled this exact scenario on many occasions but do not delay – get in touch as soon as you can.
Has the 80-Year Rule Been Abolished?
No. As of now, marriage value still applies for leases under 80 years.
Although the Leasehold and Freehold Reform Act 2024 has been passed, it has not yet abolished marriage value. There is no confirmed date for any change, and current lease extension valuations still factor in marriage value.
Leaseholders should not delay in the hope of reform — costs may continue to rise.
What If My Lease Is Already Under 80 Years?
You can still extend your lease — and you should do so as soon as possible. While the premium will include marriage value:
- Delaying may further increase the cost
- The shorter the lease gets, the more expensive the premium becomes
- Mortgage options and property value will continue to decline
Serving a Section 42 notice freezes the valuation date, so acting promptly can limit additional cost increases.
Buying or Selling With a Lease Close to 80 Years
- Sellers: Either extend before listing or serve a Section 42 notice and assign it to the buyer
- Buyers: Confirm the lease term, ask if a notice has been served, and plan to extend soon after purchase
Crossing the 80-year mark mid-transaction can result in thousands of pounds in unexpected costs.
FAQs
Can I avoid marriage value by acting early?
Yes. Extending before your lease hits 80 years avoids this cost entirely.
Does the 2-year ownership rule still apply?
No — as of January 2025, the 2-year ownership requirement has been abolished.
Can marriage value be negotiated?
Not usually — it’s calculated according to statutory formulas and accepted valuation practice.
Will the 2024 Act remove marriage value soon?
It might — but there is no confirmed timeline. Leaseholders should not wait and risk higher costs.
Summary: 80-Year Rule in a Nutshell
| Lease Term | Impact |
| Over 80 years | Lower cost, no marriage value |
| Under 80 years | Higher premium due to marriage value |
| Nearing 80 years | Act fast to avoid crossing threshold |
Get a Lease Extension Valuation Before You Cross the Line
At Extension.Lease, we:
- Provide accurate valuations based on current lease terms
- Help you act before hitting the 80-year deadline
Support sellers with Section 42 notices and premium planning
