Because of the length of the lease, and because it’s unlikely that any purchaser of the freehold is going to wait another 900 years to get the fee for a statutory lease extension, the freehold of a property with even the balance of 990 year lease is negligible.
In all honesty, even the £200 valuation is probably overstated but many leaseholders will pay that just so that they can say they have the freehold. It’s of very little value to them.
What you have been told is correct, the value of the land is irrelevant because the timescale that would elapse and the fact that currently, there is a statutory requirement that you would have to grant a new lease. Hence, while you think you may be entitled to the land the end of the lease, you are not. Of course, in the next 900 years legislation may change the moment that valuation is based upon the current law.
There is nothing in EU law which is the least bit relevant. There is nothing that says you must forfeit the price, but there is a statutory calculation for the price of a lease extension. However as mentioned, that would bring in another 900 years so is largely academic.
I wish I could give you a more favourable answer but unfortunately, what you have been told is correct.
Can I clarify anything for you?
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