Summary
Lease length can materially affect value and mortgageability. A lease below 80 years is especially sensitive because marriage value remains a major cost factor under current guidance unless and until reform changes are fully in force.
Definition
Lease length is the number of unexpired years remaining on a leasehold property. Shorter leases can reduce value, reduce buyer demand and create lender constraints because the lease is the security behind the mortgage. Under current lease extension guidance, no marriage value is payable if the lease has more than 80 years remaining when the statutory notice is served, but below 80 years marriage value can increase the lease extension premium. The Leasehold and Freehold Reform Act 2024 became law, but many leasehold reform measures are being implemented in stages and may require further legislation before they take effect. A buyer should verify the current legal position, lender lease term requirements and any lease extension premium before relying on a short lease valuation.