Calculations
Why the 80-year point matters under the current regime
An explanation of marriage value, timing and the need to check which reforms are actually in force.
The current significance
Under the valuation regime currently used for existing statutory flat lease-extension claims, marriage value is generally relevant when the unexpired term is 80 years or less at the statutory relevant date.
Marriage value represents part of the increase in the combined value of the leaseholder’s and landlord’s interests created by the new lease. It can materially affect the premium.
Do not rely on headlines alone
The Leasehold and Freehold Reform Act 2024 contains major reforms, but legislation can be commenced in stages and some valuation changes require further regulations. A proposal, consultation or enacted section is not necessarily the law currently governing a calculation.
Always check commencement and current government guidance at the time action is taken. This guide states its review date so readers can see when that check was last made.
Act with professional support
If a term is approaching 80 years, timing may have financial and procedural consequences. Obtain current advice from a solicitor and a qualified valuer rather than relying only on an automated calculation.