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dbr
If you go down the statutory route the term of the lease is extended by an extra 90 years and the rent is extinguished (technically reduced to a peppercorn rent) throughout the term of the new extended lease. The freeholder's proposed terms are less favourable than these, so I'd expect to see a significant discount on the premium to reflect that. If the premium which would be payable if you went down the statutory route would be around £36,400 anyway, then you'd be better off going down the statutory route.
Also, on their terms you'd end up paying all the freeholder's legal costs and £2,184 in fees (5% of £36,400 plus VAT). Worth bearing in mind when comparing it to the costs of going down the statutory route, where you're only liable for the freeholder's section 60 costs, which are the costs of investigating title, valuing the flat and the granting of the new lease.