Question 1

What is a lease extension, and what is marriage value?

Accepted Answer

A **lease extension** adds years to a leasehold term, and **marriage value** is an extra payment that becomes due once the lease is short — which is why extending early is dramatically cheaper than extending late.

**Why leases need extending.** A lease is a wasting asset. Every year it shortens, and the shorter it gets the less it is worth. Below around **80 years** the value falls faster; below **70** many lenders become reluctant; below **60** mortgage finance becomes difficult and the pool of buyers shrinks sharply.

**The statutory route.** Qualifying leaseholders of flats have a legal right to extend, historically requiring ownership for **two years** and producing an additional **90 years** at a **peppercorn ground rent**. The **Leasehold and Freehold Reform Act 2024** legislated changes including a longer extension term and removal of the ownership qualifying period — **but implementation has been staged**, so confirm what is actually in force before relying on it.

**The informal route** is negotiating directly with the freeholder. Faster and cheaper in fees, but **you get whatever you agree** — sometimes a shorter extension with a retained ground rent, which can be worse than it appears.

**How the premium is calculated.** Broadly three components:

**The loss of ground rent** the freeholder would have received.

**The reversion** — the value of getting the flat back at the end, discounted to today.

**Marriage value**, where applicable.

**What marriage value actually is.** Extending the lease **increases the total value** of the freehold and leasehold interests combined — the whole becomes worth more than the parts. That uplift is marriage value, and under the historic regime it is **split equally** between leaseholder and freeholder once the lease falls **below 80 years**.

**This creates a cliff edge.** At 80 years and one day, no marriage value. At 79 years, the leaseholder pays half of the uplift, which can add many thousands of pounds overnight.

**Abolishing marriage value was a central element of the 2024 Act**, and has been subject to legal challenge.

**Practical advice:** check your remaining term now, get a valuation from a specialist surveyor, and do not drift toward 80 years.

General information, not legal or valuation advice.

Question 2

What is the difference between freehold and leasehold?

Accepted Answer

They are two fundamentally different things to own, and the distinction has more practical consequence than almost any other feature of a UK property. Freehold means you own the building and the land

Question 3

What is ground rent, and what changed with leasehold reform?

Accepted Answer

Ground rent is a payment a leaseholder makes to the freeholder simply for the land the building stands on. Historically it was a token sum — a few pounds a year, sometimes a peppercorn — and it

Question 4

What are the rules on renting out a leasehold flat?

Accepted Answer

Renting out a flat you own leasehold is governed by your lease first, and the lease frequently restricts or conditions subletting in ways owners discover only when they try — or worse, after they

Question 5

How can a landlord actually increase the rent?

Accepted Answer

Only through a defined route, and which route applies depends on the type of tenancy and what the agreement says — a landlord simply announcing a higher figure does not make it payable. The available

Question 6

What are the common mistakes to avoid when negotiating a lease agreement?

Accepted Answer

Avoid common mistakes in lease negotiations by reading the lease thoroughly, understanding total costs, and clarifying responsibilities. Take your time to negotiate favorable terms.

Question 7

What happens if your mortgage offer expires before completion?

Accepted Answer

The offer lapses and the lender will not release funds — so completion cannot happen until it is extended or re-issued, which is a real risk in slow chains and is entirely avoidable with attention.

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