How RICS relativity tables work, which are most cited at the First-tier Tribunal, and why a small difference can cost thousands of pounds.
Relativity is one of the most argued-over numbers in a lease extension. It is not a figure you can look up in the statute, and no one is bound to use a particular table, yet it can move a premium by thousands of pounds. This guide explains what relativity is, where the published tables come from, how tribunals treat them and how to use one to sense-check a valuation.
Relativity is the value of a lease of a given length expressed as a percentage of the value of the same property with a very long lease (or the freehold). A relativity of 85% means a flat with that lease is worth 85% of what it would be worth with a long lease. As leases get shorter the percentage falls, and it falls faster once the lease is below about 80 years.
It matters because marriage value is based on the difference between what your existing lease is worth and what the extended lease will be worth. The lower the relativity applied to your existing lease, the larger the gap and the higher the marriage value, so freeholders' surveyors tend to argue for lower relativity and leaseholders' surveyors for higher. Relativity only affects the premium where marriage value applies, which is where the unexpired term is 80 years or fewer (see the 80-year rule).
The Gerald Eve 2016 graph is the one our calculator uses. The published points, as a percentage of long-lease value, are:
| Years left | Relativity |
|---|---|
| 5 | 9.7% |
| 10 | 19.1% |
| 15 | 28.1% |
| 20 | 36.5% |
| 25 | 44.2% |
| 30 | 51.1% |
| 35 | 57.1% |
| 40 | 62.0% |
| 45 | 66.4% |
| 50 | 70.5% |
| Years left | Relativity |
|---|---|
| 55 | 74.5% |
| 60 | 78.2% |
| 65 | 81.7% |
| 70 | 84.9% |
| 75 | 87.9% |
| 80 | 90.5% |
| 85 | 92.8% |
| 90 | 94.8% |
| 95 | 96.5% |
| 100 | 98.0% |
Values between these points are interpolated. For example, 68 years falls between 65 years (81.7%) and 70 years (84.9%), giving about 83.6%. For leases over 100 years the figure is about 98%, rising to about 98.5% at 115 years or more. These figures are one published graph, not a number any tribunal is bound to accept.
Valuers have used several published graphs, including those from Gerald Eve and Savills, and some are derived from sales evidence and others from investment-style analysis. Many of the older and most-cited graphs were drawn up for a purpose: to reflect leases that carry the statutory right to extend, and so they need adjusting for the statutory “no-Act world” (see below). They differ, sometimes materially, at lease lengths below 80 years, and that difference is where the dispute lies.
No single table has been prescribed by law. In Sloane Stanley Estate v Mundy (2016) the Upper Tribunal indicated that relativity should be based on real-world evidence of transactions where such evidence exists, treating graphs with more caution as one input among several. In Denholm, for example, the Tribunal started from the Gerald Eve graph and rejected the Savills 2002 graph as too high. Valuers are expected to explain their choice and test it against comparable sales, so a table is a starting point, not a conclusion.
A statutory valuation assumes the leaseholder has no statutory right to an extension (the “no-Act world”). Most published graphs are derived from sales of leases that do carry that right, so a deduction is made to strip it out. How large that deduction should be is one of the most contested points between surveyors, and it can move the premium substantially. Our calculator does not model that deduction separately.
Take a flat worth £400,000 on a long lease, with 72 years left. On the Gerald Eve 2016 table the existing lease is worth about 86.1%, or £344,400, and the extended lease about 98.5%, or £394,000. Using a relativity of 83.1% instead lowers the existing lease value to £332,400 and raises marriage value from about £17,000 to about £23,000; a relativity of 89.1% lowers it to about £11,000. So a swing of three points in relativity changes the premium by roughly £6,000, and that is before any argument about rates. See marriage value explained for the full calculation.
A difference of just 2% in the relativity applied to a £400,000 property is an £8,000 difference in the value placed on the existing lease, which flows straight into the marriage value calculation.
The Leasehold and Freehold Reform Act 2024 gives the Secretary of State power to prescribe relativity by regulation, which would replace case-by-case argument over graphs. That power has not been exercised and the relevant provisions are not in force. The government’s current consultation on valuation rates concerns deferment and capitalisation rates; check our reform tracker for the latest. Marriage value is also due to be abolished once the Act is commenced, which would make relativity matter much less for extensions, but there is no confirmed commencement date.
Relativity tables are published graphs or schedules showing the value of a lease of a given length as a percentage of the property's long-lease or freehold value. On the Gerald Eve 2016 table, a 70-year lease is worth about 85% and a 50-year lease about 70%. They are used in lease extension premium calculations to value the existing lease for marriage value.
Several graphs exist and their use is contested. The most commonly referenced are the Gerald Eve and Savills graphs. Since Sloane Stanley Estate v Mundy (2016), tribunals prefer real-world market evidence where it exists and treat graphs with caution. The First-tier Tribunal assesses the evidence case by case.
A statutory valuation assumes the leaseholder has no statutory right to extend (the no-Act world). Relativity figures drawn from sales of leases that carry that right are higher, so a deduction is made to strip the right out. How much to deduct is one of the most contested points in valuations.
Lower relativity means a lower existing lease value, a bigger gap to the extended lease and therefore more marriage value. On a £400,000 flat with 72 years left, a relativity of 83.1% rather than 86.1% would raise marriage value from about £17,000 to about £23,000. It only matters where the lease has 80 years or fewer remaining.
The Leasehold and Freehold Reform Act 2024 gives the Secretary of State power to prescribe relativity by regulation, but that power has not been exercised and the provisions are not in force. Until regulations are made, valuers and tribunals continue to rely on graphs and market evidence.
🇺🇸 American buying a UK flat?
The American's Guide to Buying a UK Leasehold Flat
30 pages. Ground rent, the 80-year rule, marriage value, stamp duty, US tax reporting and the 2026 reforms — all in plain American English. Written by Rahul Tandon, LeaseVault founder.
This guide is researched from official and primary sources. Check them directly before relying on any figure or date.
We'll email you when 2024 Act provisions come into force and when new premium rates are confirmed.
Get your instant lease extension estimate using official RICS rates.
Calculate Now →This article is for general information only and does not constitute legal or financial advice. Always consult a specialist solicitor and RICS surveyor before taking any action.
We'll notify you when 2024 Act provisions come into force, new rates are published, and when landmark Tribunal decisions affect your premium.