Understand how RICS relativity tables work, which tables are most cited in First-tier Tribunal decisions, and why a small difference in your relativity percentage means thousands of pounds.
Relativity tables are mathematical schedules that express the value of a leasehold interest as a percentage of the equivalent freehold value, at different remaining lease lengths. They are a fundamental tool in all leasehold enfranchisement premium calculations and are published by major surveying firms including Gerald Eve and Savills.
The relativity percentage directly affects both the reversion value and marriage value components of the premium. A seemingly small difference can significantly alter the total figure — which is why disputes between surveyors often focus on which relativity table to use and what it yields for a specific lease length.
A difference of just 2% in the relativity applied to a £400,000 property represents an £8,000 difference in the marriage value component alone — highlighting why specialist surveyors are essential, not optional.
No single table has been prescribed by law. The most commonly cited in Tribunal decisions are the Gerald Eve and Savills tables. The First-tier Tribunal typically takes a weighted average or selects the table with the most relevant local comparables.
Standard tables apply to statutory lease extensions. Where a leaseholder is negotiating informally or is not yet eligible for the statutory route, different relativity figures may apply — reflecting the market value of the short lease without the benefit of enfranchisement rights. This distinction can substantially affect premiums.
RICS relativity tables are datasets that show the percentage of a property's freehold value that a leasehold interest of a given term is worth. For example, a 70-year lease might be shown as worth 95% of freehold value — a relativity of 95%. These percentages are used in lease extension premium calculations to determine the current leasehold value and the post-extension leasehold value, which together determine marriage value.
Several graphs exist and their use is contested. The most commonly referenced are the Gerald Eve graph, the Savills graph, and the Leasehold Advisory Service (LEASE) graph. The choice of graph can significantly affect the calculated premium — freeholders typically prefer graphs that show lower relativity (increasing marriage value), while leaseholders prefer higher relativity graphs. The First-tier Property Tribunal assesses comparables on a case-by-case basis.
Relativity figures come in two versions: with-Act (assuming the leaseholder has statutory rights) and no-Act (assuming no statutory rights exist). The with-Act figure is higher because statutory rights give value to the lease. No-Act relativity is used in marriage value calculations because marriage value represents the gain from acquiring a statutory extension — so the starting point must be the value without those rights.
Lower relativity = higher marriage value = higher premium. If a surveyor argues your 72-year lease has 93% relativity rather than 95%, the current leasehold value is lower, the gap between current and post-extension value is larger, and marriage value increases. Disputes between surveyors often centre on which relativity graph to apply and what percentage corresponds to your specific lease length.
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