Glossary · UK
What is Marriage Value (Leasehold)?
The increase in a property's combined value created by merging the leasehold and freehold interests, which was historically shared 50/50 with the freeholder on short lease extensions.
Full Definition
Marriage value is a concept in leasehold law that refers to the additional value unlocked when a leasehold interest and the freehold interest in the same property are merged. When a lease has fewer than 80 years remaining, market value falls noticeably -- lenders become reluctant to lend against such properties and buyers pay a significant discount. Extending the lease (or buying the freehold) restores full value. The difference between the combined value of the unextended lease plus freehold, and the value of the property with a long lease, is the marriage value. Under the Leasehold Reform, Housing and Urban Development Act 1993 (as it operated before reform), where the lease had fewer than 80 years remaining at the date of the claim, the premium payable for a statutory lease extension included 50% of the marriage value, split equally between leaseholder and freeholder. The Leasehold and Freehold Reform Act 2024 abolished the requirement to share marriage value with the freeholder for new statutory lease extension and collective enfranchisement claims. This is a significant change that substantially reduces the premium payable for leaseholders with short leases. However, as of 2026 some provisions are still being commenced and professional valuation advice from a RICS-accredited valuer remains essential when pursuing a lease extension or freehold purchase.