I wanted to mention how important having a good ground on the frame is:
Take a grinder, Dremel Tool, Emery cloth whatever you have, and ruff up the frame near the Coil on the painted frame where the black wire is clamped to the frame.

Thanks, replaced points last night, defo starting more easily, HT coil tonight.
Bit reluctant to change crank seal so going to try all else before doing seals

Not sure what planet Yamaha were on when designing wiring because black from the mag is live magneto AC for ignition & black everywhere else is earth for the DC earth side of things & earthed to usually a coil mount or close by. Not sure where on LT2. I had an LT2 once, mostly a parts bike but enough to get excited & damn it i took it to the scrap--now i want it back. Was 30 years ago but!!.

Thanks for all your tips, fitted new HT coil today and bike started first kick and runs sweet. Hubby ridden it round garden, waiting for my go Lol

Hi RT325, yes having probs. After fitting the HT coil and checked all earthing points the bike run for a while. I stalled it a couple of times to start but then run it round the garden for a good while all OK. We then struggled to restart it when hot though and not started properly since and then cuts out after 10-15 seconds like pulling off the plug cap. Found the ignition coils outside specs & limits so have a tested second hand bit on its way to us now.
We now have indicators & tail light on key position 1 but no neutral

Be good to have a video with good audio as bit of a guessing game really, but instant cut out sure sounds like spark as usually starving for fuel sort of fades out rather than instant. Could be source coil related but they're heavy windings on those not like a cdi source coil so rarely give trouble. Think you did the HT plug coil. Often if a source coil is failing it'll give out when hot the restart after a time then do the same again. I'm out of idea though without hearing it sorry.

Thanks for you help. Bike is running super nice. Now have my CBT cert. and been for a ride on the road. Thanks again