So this is the story so far.
Spent about 2 hours on the phone to Apple (3 separate phone calls) and HOURS !!! On the phone to O2 and on live chat.
Apple can't tell me what the hell has happened, they are saying the think it's something O2 have done but have also confirmed they can't unlock it would need to be O2 who instigate the unlock. They also said there is NO restriction from Apple's end as to what O2 can and can't unlock so based on the fact I bought the phone privately they should have no hesitation in unlocking it. I am still trying to get a resolution to this from them.
O2. I have been on live chat with 4 different people now, the first 2 between them were unreal, they told me that yes we can do it but you need to go and buy a PayGo SIM and make a call from it, then in 24hours come back and we will unlock it. I did that, and when I went back to them they told me they couldn't do it because my PayGo balance was less than £15, so I topped up to £20. Then he told me, sorry we can't do it at all as you didn't buy the phone from us.
That's the standard line from the remaining people. No we will not unlock it as you didn't buy it from us. And No we won't refund the £20 we told you to spend on PayGo SIMs.
I'm so frustrated at the moment it's unreal, no two people give you the same answer, it's so unprofessional !!!