Lease Extensions: Why It Gets More Expensive When Your Lease Falls Below 80 Years
Understanding the Cost of Lease Extensions and the Impact of Marriage Value
Extending your lease is an essential process for leaseholders looking to maintain the value of their property. However, many leaseholders are unaware of a critical threshold that significantly impacts the cost: the 80-year rule. Once a lease falls below 80 years, the cost of extending it increases substantially due to marriage value, a key factor in lease extension calculations. In this blog, we explain what marriage value is, how it affects your lease extension premium, and why early action can save you thousands of pounds. We also cover the professional fees involved in a lease extension, ensuring you are fully informed of the costs you will incur.
What Do Leaseholders in Kent and East Sussex Search for When Extending a Lease?
If you’re reading this, you may have searched for:
“How much does a lease extension cost in Tunbridge Wells?”
“What happens if my lease falls below 80 years in Sevenoaks?”
“What is marriage value in lease extensions?”
“Lease extension solicitors and surveyors in Kent and East Sussex”
“Is it worth extending my lease in Hastings or Brighton?”
These are common search terms used by leaseholders in Tunbridge Wells, Sevenoaks, Hastings, Brighton, and surrounding areas seeking guidance on lease extensions. Understanding the costs, legal implications, and professional assistance required can help you navigate this complex process effectively.
What Is Marriage Value and Why Does It Matter?
Marriage value is a key element in lease extension calculations under the Leasehold Reform, Housing and Urban Development Act 1993. It represents the increase in a property’s value once the lease is extended. When your lease falls below 80 years, the law dictates that the freeholder is entitled to 50% of the uplift in value—known as marriage value. This dramatically increases the cost of extending your lease compared to if you had acted earlier.
How Much More Will a Lease Extension Cost If My Lease Falls Below 80 Years?
To illustrate the financial impact, let’s consider two scenarios for a flat worth £300,000 in Tunbridge Wells or Sevenoaks:
Leaseholder A extends their lease at 81 years – The premium is based on ground rent loss and the additional lease term granted. No marriage value is included in the calculation. The likely premium might be around £10,000 - £12,000.
Leaseholder B extends their lease at 79 years – The premium is significantly higher because it now includes 50% of the marriage value, in addition to the standard premium. The likely premium might increase to £18,000 - £22,000.
Why Do Lease Extensions Become So Expensive?
The reason for the sharp increase in costs when your lease drops below 80 years is due to how property values and mortgage eligibility are affected:
Mortgage restrictions – Many lenders refuse to mortgage properties with leases under 80 years, limiting the number of potential buyers.
Reduced market value – A shorter lease makes a property less attractive, leading to lower valuations and weaker negotiating power.
Legal entitlement of freeholders – Once the lease drops below 80 years, freeholders are entitled to a share of the marriage value, increasing their compensation when you extend your lease.
Breakdown of Lease Extension Costs: Premium & Professional Fees
A lease extension involves more than just the premium payable to the freeholder. Leaseholders must also budget for professional fees, including:
1. Valuation Fees
A specialist surveyor, such as Olden Property, will assess your lease extension premium for properties across Kent and East Sussex, including Tunbridge Wells, Sevenoaks, Hastings, and Brighton.
2. Legal Fees
You will need a solicitor to handle the legal process. We can recommend lease extension solicitors who regularly work in this region.
3. Freeholder’s Legal and Valuation Costs
Under the 1993 Act, leaseholders are required to cover the freeholder’s reasonable legal and valuation costs.
4. Tribunal Costs (if necessary)
If negotiations fail and the case proceeds to the First-tier Tribunal (Property Chamber), additional legal fees will apply.
Should You Extend Your Lease Now?
If your lease is approaching 80 years, taking early action can save you thousands of pounds. Here’s why:
✅ Avoid marriage value – Extending before the 80-year mark prevents the additional 50% uplift payable to the freeholder.
✅ Lower valuation premiums – A longer lease means a lower premium, making early extensions more cost-effective.
✅ Better mortgage options – Properties with longer leases are easier to finance and sell.
✅ Negotiation leverage – Leaseholders with more time before hitting the 80-year mark have greater flexibility in negotiating terms.
How Long Does the Lease Extension Process Take?
A statutory lease extension under the 1993 Act takes around 6 to 12 months, depending on negotiations and whether the case goes to tribunal. Leaseholders should plan accordingly to avoid delays that could push the lease below 80 years.
Why Choose Olden Property for Lease Extension Valuations in Kent and East Sussex?
At Olden Property, we specialise in leasehold reform, including lease extensions and collective enfranchisement. As a RICS Registered Valuer with 20 years of experience, I personally handle all valuations and negotiations. We assist leaseholders across Tunbridge Wells, Sevenoaks, Hastings, Brighton, and surrounding areas, ensuring they understand their options and secure the best possible terms.
Over the past 10 years, Olden Property has acted for hundreds of leaseholders throughout Kent and East Sussex, providing expert valuation advice and negotiating fair premiums for lease extensions.
🔹 Expert lease extension valuations – We provide professional, detailed assessments to ensure you don’t overpay.
🔹 Negotiation support – We work on your behalf to secure the most favourable premium.
🔹 Comprehensive service – We guide you through the process from start to finish.
If your lease is approaching 80 years, don’t wait—contact Olden Property today to discuss your options and safeguard your property’s value. We offer lease extension valuation services across Tunbridge Wells, Sevenoaks, Hastings, Brighton, and throughout Kent and East Sussex.