How Many Years Left on a UK Leasehold Is Safe? What Happens Below 80 Years

When buying property in the UK, many overseas buyers focus on location, developer reputation and finish quality, yet overlook one seemingly minor figure buried in the contract that in fact determines the safety of the entire investment: the number of years remaining on the leasehold. This figure shapes not only the future cost of extending your lease, but also how easily you can resell, whether you can secure a mortgage, and the long-term value of the asset itself. IREIS Properties has spent years helping overseas clients buy in London, and we know that an attractive-looking property can, if the years remaining are ignored, lead to a bill far larger than expected. This guide explains this crucial threshold and the real judgement you need before you view and sign.

First, a foundational point. UK residential ownership comes mainly in two forms: freehold and leasehold. Freehold means you fully own the land and the building on it, with no time limit. Leasehold means you own the right to occupy and use the property for a fixed number of years, which may be 99, 125, 250 or even 999 years. A large share of central London flats are sold as leasehold, which is entirely standard in the UK and not a problem in itself. What truly matters is how many years are left on that lease.

How many years left on a leasehold is safe?

The short answer: as a general rule, keeping the years remaining above 80 gives you more comfort, and where possible you should favour properties with a generous term (for example over 100 or even 125 years). The reason is that current UK law sets a clear threshold at 80 years. While the term stays above 80 years, the cost of extending is relatively contained; once it drops below 80 years, the amount payable to extend rises sharply, which is the “marriage value” mechanism explained below.

For overseas buyers, the most practical approach is, when viewing any leasehold property, to first confirm the original term and start year on the contract, then work out exactly how many years remain right now. New build properties are usually sold with longer terms, so the years remaining are rarely an issue; but if you are considering a second-hand property, or a scheme that has been selling for many years, pay particular attention. When IREIS Properties assesses any property for a client, the years remaining is one of the very first items we check.

The 80-year threshold: what is “marriage value”?

Directly stated: under the current Leasehold Reform, Housing and Urban Development Act 1993, once a lease drops below 80 years, when you carry out a statutory lease extension you must additionally pay the freeholder a sum known as “marriage value”. This is still the operative rule that applies today.

The term “marriage value” sounds abstract but is not hard to understand. When you extend a short lease, the overall value of the asset increases because the term is lengthened, and the law requires the leaseholder and the freeholder to split that uplift in value equally. In other words, the leaseholder must give half (50%) of the uplift created by the extension to the freeholder. When the term is below 80 years, this marriage value is added to the total cost of extending, so the premium rises sharply. By contrast, while the term remains above 80 years, no marriage value is due on extension, and the cost is naturally much lighter.

This is why 80 years is treated as both a psychological and a financial threshold. Many experienced UK buyers deliberately avoid properties about to drop below 80 years, or require the seller to complete an extension before exchange. The closer the term is to 80 years, the less room you have to plan calmly; once it falls below 80 years, the extension bill can come as an unwelcome surprise. IREIS Properties cautions that the precise extension figure involves professional valuation and varies with the property value, location and term, so it must be calculated by a qualified valuer and solicitor. This article quotes no figures, to avoid misleading you.

Was the law reformed in 2024? When does it take effect?

The direct answer: Parliament has indeed passed the Leasehold and Freehold Reform Act 2024 (LAFRA), but as of mid-2026 the core provisions of this Act are largely not yet in force. In other words, the direction of reform is settled, but when you transact right now you should still rely on the current law, not on a new regime that has not yet started.

To avoid any misunderstanding, here is the true status of each provision, item by item:

First, the abolition of marriage value has been enacted but is not yet in force. This reform aims to remove the requirement to pay marriage value when extending a lease below 80 years, but it is still awaiting secondary legislation on valuation rates before it can begin. Please note carefully: as things stand, marriage value has not been abolished, and the current 80-year rule remains in force.

Second, the standard 990-year extension with ground rent reduced to a peppercorn has been enacted but is not yet in force. The intended regime would let leaseholders extend in one step to 990 years and cut the ground rent to a nominal amount, but this too has not yet started. So please do not assume that buyers can now obtain a 990-year extension; that is not currently the case.

Third, the removal of the requirement to have owned the property for 2 years before applying came into force on 31 January 2025. This means leaseholders no longer need to have owned the property for 2 years before claiming a statutory extension or buying the freehold; you must, however, still be the registered owner of the property.

Fourth, on the legal challenges and timing: some freeholders brought a legal challenge against the new law, and the High Court dismissed those challenges on 24 October 2025. The Government has said it will consult on valuation rates and will commence the relevant provisions “as soon as possible”, but as of June 2026 there is no firm commencement date.

Put simply, the overall direction of reform favours leaseholders, future extension costs below 80 years should fall, and terms may be extended in one step to 990 years. But all of this remains in the “awaiting commencement” stage. The position of IREIS Properties is clear: until the new regime is formally in force and a commencement date is confirmed, base your buying and selling decisions on the rights and obligations under the current law, and do not treat the not-yet-effective benefits as already accomplished facts.

A separate Act that is often confused: the 2022 ground rent reform

It is worth noting another law, distinct from LAFRA: the Leasehold Reform (Ground Rent) Act 2022. From 30 June 2022, this Act banned most newly granted long residential leases from charging a meaningful ground rent, reducing the ground rent to a peppercorn. Please note in particular that this applies to new leases and is a separate matter from the existing leases addressed by LAFRA 2024; the two should not be conflated. For buyers purchasing a brand-new scheme, this generally means your ground rent burden is already much lower, a positive structural change.

Can you buy a short lease? The composed advice of IREIS Properties

The direct steer: a short lease (for example one whose years remaining are close to or below 80) is not something you can never touch, but it requires more careful assessment and more professional help, and is usually not suitable for overseas buyers unfamiliar with the UK system to take on lightly.

If a short-lease property is genuinely outstanding in location, price or potential, workable approaches include requiring the seller to complete an extension before completion, reflecting the estimated extension cost in your negotiation, or assessing the timing and cost of extending yourself with a solicitor’s help. But all of these must rest on precise valuation and legal advice. For most overseas clients, rather than carrying the uncertainty of a short lease, IREIS Properties will usually advise favouring properties with a generous term, so that your asset stands on comfortable ground from the very first day.

In summary, leasehold itself is a mature and common UK system, and there is no need to feel uneasy about the word “leasehold” alone. What truly deserves your attention is that specific years-remaining figure and its distance from the 80-year threshold. Ask about the term when you view, have a solicitor verify it before you sign, and where necessary commission a valuer to calculate the cost — do these three steps thoroughly and you can keep potential risk well within your control. The London-based trilingual advisory team at IREIS Properties stands ready to safeguard every financially significant detail at each key stage of your property decision.

Further reading: if you would like to build an overall understanding of the UK ownership system first, please see our pillar guide, The Complete Guide to UK Property Tenure and Terminology; for more practical buying guidance, visit our UK Buying Guides.

Leasehold law is currently undergoing reform; what actually applies is the law currently in force. Please consult a qualified UK solicitor before buying or selling.