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This seems wrong, What should I do?

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Well done James.

It's always a case of doing the right thing at the end of the day, Over the years you get to hear/read so much 'Spin' as individuals put their case to why they registered a domain but, at the end of the day any half decent domainer will try to view it from a neutral standpoint. You read like someone that has their head screwed-on, and theres much to much good-business out there to be involving yourself with the bad
 
May as well try and get a few bob for it off them. Then everyone will be happy
 
Update

I have sold the site to them, thanks again for the help.

best regards

James
 
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Great attitude James and nice to see someone learning from the experience too without having the 'know it all' attitude - how much did you get for it?
 
Good man :) Glad to see its in the right hands and both parties are happy.
 
no point in asking the question if you arent going to take the advice

great attitude james and nice to see someone learning from the experience too without having the 'know it all' attitude - how much did you get for it?

1500 + vat
 
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