Lease Length and the 80-Year Threshold

From the BEO:


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Dear Leaseholders,
 

I hope you are well and that 2026 has begun positively.

I am writing to Barbican leaseholders to draw attention to an important matter concerning lease length and statutory lease extensions. This information will be most relevant to leaseholders who have not yet extended their leases, though it may not apply in all cases.

Many residential leases at the Barbican expire on or around 1 July 2106, with some variation between blocks. For leases that have not been extended, this means the remaining term will fall below 80 years from early July this year.

Under current leasehold legislation, once a lease has fewer than 80 years remaining, any statutory lease extension is subject to an additional element of premium known as "marriage value" (see the Leasehold Advisory Service definition Marriage value - The Leasehold Advisory Service). The inclusion of marriage value can significantly increase the cost of a lease extension and will usually require a professional valuation.

You may be aware that the Leasehold and Freehold Reform Act 2024 includes provisions to abolish marriage value. However, these provisions have not yet come into force, and there is currently no confirmed timetable for their implementation. Until the law changes, marriage value remains payable where a lease has fallen below the 80-year threshold.

While the City of London Corporation is unable to advise individual leaseholders, we wish to ensure that residents are fully informed. Leaseholders who have not yet extended their leases may therefore wish to consider beginning the statutory lease extension process before July this year. Serving the required statutory notice before a lease drops below 80 years would mean that marriage value does not apply under the current legal framework.

If you would like general information about the lease extension process, including the procedural steps involved, please contact: 

dccs-beo-servicecharges@cityoflondon.gov.uk

We recognise that the current uncertainty surrounding future legislative reform is unhelpful, and we will continue to monitor developments and keep leaseholders informed.

Our aim is always to support Barbican leaseholders by providing timely and transparent information, enabling leaseholders to make informed decisions.