What is the price of a lease extension based on?

The price payable for a lease extension includes three elements:

1. the reduction in the value of the landlords’ interests in your flat affected by giving you a lease extension of 90 years
2. half of any marriage value that may be payable. However, there will be no marriage value payable if your lease has more than 80 years to run
3. compensation to your landlord for severance or other losses.