One thing you might want to reflect on is what price would be reached if it went on open auction on ebay. That will tell you what people are willing to pay rather than 'what it's worth'.
Unfortunately there's little in the way of completed open auctions for a car of your age/mileage. Most cars of your age are 120k+ and struggle to reach £1,000. There are 3 cars I found in similar condition/with similar mileage - £1,700, £860 and £1,350. I'd rule out the silly low one - I'd have bought that myself if I'd have noticed it! So on this very small sample £1,695 still looks sensible to me.
If you can afford to wait I think you'll sell it fine in due course - though don't forget we are off season now until March. If you can't wait, well you'll need to look at your options I guess. But I wouldn't look at breaking it. If you do it yourself it's hard work getting your money back. If you sell it to someone on that basis you'd be lucky to see north of half of what you want.
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